Federal Solar Tax Credit Guide - How it Actually Works & What You Need to Know

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This video covers the federal solar tax credit in detail and explains how it actually works, and everything you need to know about how to claim the federal solar tax credit and more.
*This is not financial advice and you should speak with a qualified accountant and/or tax professional before claiming the solar tax credit.
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Time Stamps
00:00 - Intro
00:55 - Tax Credit Extension & Increase
01:31 - Q1: What is a Tax Credit?
02:13 - Q2: How to Calculate Your Tax Credit
04:07 - Q3: How to Qualify for Solar Tax Credit
05:06 - Q4: What does Tax Credit Cover?
06:50 - Q5: Renters & Condo owners
07:49 - Q6: Secondary Homes / Vacation Homes
08:26 - Q7: Do Off-grid Systems Qualify for Tax Credit?
08:54 - Q8: Do panels need to be roof mounted?
09:20 - Q9: Financing a system & Tax Credit Qualification
09:51 - Q10: Refunds on Tax Returns?
10:18 - Q11: How to Claim Solar Tax Credit
10:51 - Conclusion
Solar Tax Credit Video References:
- www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics#:~:text=Solar%20PV%20systems%20installed%20in,a%2030%25%20tax%20credit.)
- www.energy.gov/eere/solar/articles/federal-solar-tax-credit-resources
- www.gpo.gov/
- www.irs.gov/
- www.dsireusa.org/
- www.energy.gov/eere/solar/webinar-reaching-solar-future-how-inflation-reduction-act-impacts-solar-deployment-and
- www.irs.gov/forms-pubs/about-form-5695
- www.irs.gov/pub/irs-pdf/i5695.pdf

Опубликовано:

28 окт 2022

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Комментарии : 68

@johnpeter366 Месяц назад

Thanks, great delivery. If I need to take a tree down to install panels, would that labor be covered as well?

@donnalutheran6335 Год назад

Thanks for putting together this video. We bought a jackery this year and a solar panel. I want to buy an eco flow and a couple more panels this year. I downloaded the form. We want to invest a little at a time and this will help. We also got an ev lawnmower which I think we can get a credit for that too.

@lightnrod 8 дней назад

EV mower will not qualify

@hollymohr538 Год назад

Very informative video, thanks for taking the time!

@billybethel Год назад

great video! Do you know if we.can get the 30% credit if we build a new do it yourself system?

@kylewatson5133 Год назад

Form 5695 doesn't include anywhere to provide your solar receipts. How do you avoid an audit? The last think you want is for the IRS to be hounding you.

@ridemfast7625 Год назад

If its a self install, the skies the limit, almost. Solar installer quotes I have seen are 2-4 times more than a self install. And , they want that that tax credit money put back into the finance balance or the monthly payment goes up. For instance, 4kw install is $26k and they want toe $7k tax credit also. Monthly payment of $106 or $156.

@wilsonmendez9637 Год назад

Very clear and concised. Very helpful. Thank you.

@thomasjacques5286 Год назад

Based on my FITW I usually end up paying in about $8K, but I’m being forced to take the RMD and since we don’t need it and was wondering what to do with that money, the taxes I’ll have to pay on that will bump up my withholding to about $12K maybe $13K. Tesla calculated my system out at $46K so my credit would be about 13,800. So the carry over is icing on the cake. Would be helpful if you could provide examples of what line items on your return are used to calculate the return. Thanks.

@KentP-rw9zf 6 месяцев назад

Would I qualify for the federal tax credit if I pay a 3rd party (Plastiq) with a credit card and then Plastiq issued a check on my behalf to the solar company? Note I am the owner of the panels

@BSnydr 7 месяцев назад

How does the IRS know if my off grid system is generating power? Do I just tell them I installed it and it’s generating power? Does the irs come to my residence to verify it’s generating power?

@cowboymcq6711 Год назад

Thanks for the help dude Super informative 🌞🌞🌞🌞🌞🌞🌞🌞🌞👍🏼

@FitzgeraldCharles Год назад

If i install a new roof in order to go solar, will i be able to claim the tax credit on that as well?

@ridemfast7625 Год назад

hahaha Now thats cleaver accounting. I like it!! Biden and Newscum wont.

@SteveSmith-uh1ui 8 месяцев назад

They're not free, you either pay up front around $28000.00 or make payments in the amount of your electric bill for 30 years, which runs the cost up to around $52000.00. FREE, is just a sales pitch. Although after installation of solar panels my usage went from 1340 kwh down to 322 kwh as compared to the same time frame the year before.

@garreb7 Год назад

What about seniors that are on Social Security and Do Not File a tax return?

@Treyefverv Год назад

You should get a PPA. From Sunrun

@joyjann3275 Год назад

Wow, well explain. Thank you so much.

@RJArrayCPA Год назад

Do commercial panels or a field system on a ground mount (still for my residence) qualify for the 30% credit? Also, does the tax credit reduce the federal income tax thats already been deducted from my paychecks? Or does the credit only reduce the tax that I owe at the end of the year when I go to file my taxes?

@nodelayfordays8083 10 месяцев назад

Are you sure it has to be a home you own? I thought it was as long as you live there?

@danielcote3141 Год назад

Very good explanation but what about if you get payed by W-2 and you pay your taxes during the year? I heard that in w2 case you get a check from the IRS but not sure about it. Your examples are only for 10.99 people

@alzuu1 2 месяца назад

Pretty sure they look at the whole liability from the whole year.

@acefire4050 Год назад

So what you're saying is there is any tax credit back taxes which I don't have never fell behind on my so if I buy solar panels I go claimed the $15,000 and tax credit I just don't get it then the federal government distilled that $15,000 for me because I don't have bad Texas 33 person supposed to work for me if I don't have tax debt.

@snap7749 Год назад

Are you sure interest on the loan is not eligible for the 30%? I'm reading otherwise

@dieseldawg7132 Год назад

Why is it that the solar companies adding what you would get back on the bill???? It’s like you’re paying it just to get it back ?

@acefire4050 Год назад

So if I put solar panels on my house and I don't hire anybody to do it then do I get to pay myself to put the solar panels on my roof and on my ground mounts and my batteries and inverters and generators and hooking up to my house do I get to pay myself. Is that how many get to text credit cuz I never have bad taxes for at least another 24 years I would never have bad taxes because all my taxes is paid so how will the tax credit work for me.

@ramoncarrion4913 Год назад

Is Puerto Rico considered a part of the United States for purposes of the tax credit ? Thank you, Ramon Carrion

@mykellcrandall9688 Год назад

Question: when I look to see how much federal tax I paid last year to estimate how much solar credit I can expect do I include the social security and Medicare taxes also or only income tax?

@lightnrod 8 дней назад

Federal tax that you pay per the 1040 tax return

@marthamora6648 Год назад

I have watched your video 3 times and have been glad for your information, thank you. For a house that’s 5100 sqft, how many panels would you recommend are needed?

@ridemfast7625 Год назад

Size of house is irrelevant. Pull your annual kw usage and start their. PGE provides this info on their web site.

@acefire4050 Год назад

Well if I don't get a paper receipt my tax person can't give me a text person can't give me a tax credit I don't know how to take a seat off the phone and print it out to give to my tax percent at the end of the year or should I say between February and April 15th so I'm unable to claim it unless I get a paper receipt.

@athiruzma Год назад

how do you cover the loan with 30% tax credit when its deducted?

@JupiterSavesEarth Год назад

I thought the labor isn't included in the 30%

@woohan6430 Год назад

I have taxes taken out every pay check, so I get that back if the total is below the tax credit?

@alzuu1 2 месяца назад

Yes, you will see the total taxes at the end of the year and you would minus the tax credit from it. The difference would be a refund.

@robertl5754 Год назад

Would a bluetti ac200p be eligible?

@freddyortiz6030 Год назад

Great video! Thank you so much. I have a question regarding how the credit gets applied to the loan. I was told if the credit does not get applied, my payment will increase after a year. How does that work?

@KEOTMA1 Год назад

The solar financing company will get that tax credit one way or the other. Example: If your system costs 50 Thousand. Your tax credit is 15 thousand. The solar finance company will tell you that the system will be financed for 35 thousand dollars to start. The finance company will expect you to pay them the 15 thousand tax credit. You will pay those 15 thousand either: 15 thousand in cash after 16 months or so; or, they will finance another loan for those 15 thousand at a higher interest rate in 16 months. You, the consumer, never get that that tax break. The finance company will get it. So,if you end up financing the 15 thousand dollars(TAX CREDIT) with that same solar financing company, you will pay a higher interest rate on that 15 Higher rate than the 35 thousand you financed initially. In other words, you will have 2 loans: 1 for 35 thousand at one interest rate, and another for 15 thousand at a higher interest rate. Financing solar is pretty much a terrible investment loan.

@WiSeNhEiMeR-1369 Год назад

HOWdy S-S-K, Thanks COOP WiSeNhEiMeR from Richmond, INDIANA ...

@anthkubrak7669 Год назад

Wouldn’t this come out of federal liability, if I’m getting a consistent pay check where my employer deducts federal liabilities at the end of the year they have deducted 15k would I not get that back if my tax credit is 10k

@alzuu1 2 месяца назад

yes, they look at the whole tax liability including the taxes that were withheld from your employer.

@mikeavery4098 Год назад

But I pay the maximum amount throughout the year and always get money that I've already paid in back so how would that tax credit work with that

@daveunbranded Год назад

Take more dependents

@alzuu1 2 месяца назад

It would just add to the refund you already get based on how much tax liability is taken off from the credit.

@Bobby-nr1sx Год назад

I am getting a refund , how does ITC work in this situation?

@alzuu1 2 месяца назад

It just adds to the refund considering you had tax liability during the year.

@uscrama Год назад

It’s unclear if upgrading the electrical panel includes the credit. Does anyone know.

@daveunbranded Год назад

If you're doing so because of the installation, yes

@defendingthefaith.7889 Год назад

I was told I get a check. And Or drop it back to the finance company. This tax credit is not needed by those who never owe. Only good thing about me going Solar. Is I have no electric bill.

@tookster7483 Год назад

So, you are a Vet OR didn't pay a dime in taxes last year?

@defendingthefaith.7889 Год назад

@@tookster7483 oh I paid taxes. And I am not a vet.

@defendingthefaith.7889 Год назад

@@tookster7483 and we actually got 6,000 back after doing our taxes. And will get it again next year.

@witz224 Год назад

Why don’t solar companies tell you the truth about the solar tax credit? 3 different companies told us that we’ll see the 30% when we get our federal refund. You can use that money for a vacation, car etc. We did go solar and was expecting that money at tax time. Lesson learned, don’t trust sales guys !

@tookster7483 Год назад

Why? I just did my tax yesterday, and i got it. Admittedly, not the full 30%, but it rolls over to next year as my liability wasnt the full refund amount. the ONLY reason why you may not have gotten it is you were a vet or didnt pay a dime in taxes through your job.

@robertmoors5850 Год назад

So retired people with Social Security does not help those who need it the most

@CarlosN-pq9zr Год назад

Yes It doesn't seem fair that because you don't work anymore but paid taxes all your life you can't benefit from it. I sure could use about 55% rebate on my system between federal and state tax. I hear people say tax credits can be sold/transferred but the IRS is not clear on that yet.

@acefire4050 Год назад

Bad you would have to be what only 3 kilowatts yeah that only lasts about an hour I rather have not less than 30 kilowatts of batteries or more.

@fredpoarch1985 Год назад

We had a salesperson come out from a solar company. He informed us that it would cost us $52,000. So much from free shit.

@jacoblopez2613 Год назад

@fredpoarch1985 so I’m guessing you prefer paying the utility company that will raise the cost of electricity every year?

@fredpoarch1985 Год назад

@@jacoblopez2613 I'm guessing that you would pay a surety of $52,000 out of your own pocket and be happy. Due to a lot of peoples tax situations it is not costs effective . Would you like to go in debt to make solar companies profit? A solar company is not altruistic.

@fredpoarch1985 Год назад

@@jacoblopez2613 By $52,000? Go woke go broke.

@alzuu1 2 месяца назад

@@fredpoarch1985 52k for what? That's pretty expensive especially for a solar system without batteries. It's supposed to be way lower than that. For many people, they will save a lot of money if they go solar. I just find it funny you say "go woke, go broke." Buying solar is now "woke"? what kind of logic is that? Imagine thinking saving money is bad.

@fredpoarch1985 2 месяца назад

@@alzuu1 At $52,000, does that equate to no cost for you?

@acefire4050 Год назад

$0 in taxes it carries over the following year and the following you since I pay all my texts I get a zero tax debt$15,000 what disappears you have $0 to owe that does not make sense to me. Yeah you might be right in about 15 years I might have a bed tax that I owe so maybe 2K 15 years. Online and pay the bad Texas might getting fifteen years from now.