2022 Tax Season
The 2022 tax season is here! So, if you installed a solar system in 2022, it’s time to get your 30% tax credit. Below is a link to solar tax credit form 5695 and the IRS instructions for 2022. With the form below, you will use your final paid invoice and submit it with your taxes. The tax credit rate for 2022 systems is 30%. The tax rate will remain at 30% through the end of 2032.
More Information On the Solar Tax Credit
If you need more information about the tax credit, the summary of the tax credit is below. You read the full document at DSIRE.org. That website, run by the N.C Clean Energy Technology Center at North Carolina State University, is a database of incentives. Click here to go to their 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 has information on incentives and policies that support renewable energy and energy efficiency in the United States. You can search for incentives by state. 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, we recommend that you talk with your tax professional.