2020 Solar Tax Forms
2020 Tax Season
The 2020 tax season is here! Therefor, if you installed a solar system in 2020 below is a link to solar tax credit form 5695 for the 2020 tax year and to the instructions. Most importantly, you can use your final paid invoice with your submission. The tax credit rate for 2020 systems is 26%. After that tax rate will remain 26% just through the end 2022 and will change to 22% in 2023.
More Information On the Solar Tax Credit
Below is the summary of the tax credit from DSIRE.org which is run by the N.C Clean Energy Technology Center at N. C. State University. Additionally, if you would like more detailed information, click here to go to that page.
A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.
DSIRE.org is a source of information on incentives and policies that support renewable energy and energy efficiency in the United States. You can search for incentives by state on the site or look at federal incentives by scrolling under the map of the united states.
Finally, if you have tax questions regarding the filing of the solar tax credit beyond the instructions linked below, we recommend that you talk with your tax professional.