How Much Do You Get Back in Taxes for Solar Panels?
If you’ve been considering a solar panel investment, you may be wondering how much you can save in taxes. The truth is a lot! By combining local, state, and federal incentives, installing a solar system can be a lucrative purchase for Florida homeowners and businesses. Though each client’s savings will be unique, Solar Bear Tampa has compiled a list of financial incentives you can expect when going solar.
Perhaps the most well-known credit to take advantage of is the Federal Solar Investment Tax Credit (ITC). It has created clean energy and saved homeowners thousands of dollars since 2006. The current tax credit is 26% of your total project costs (ex: permits, installation, and equipment) and can be claimed as a credit on your federal tax return for the current year. It’s important to note that this incentive is only available if you own the system, not through a lease. The ITC is slated to drop again by 4% in January 2023. All the more reason to begin your solar journey now and lock in the current rate before it shifts in the new year.
Statewide, the rising popularity of solar has led to some amazing financial incentives for owners. Currently, in Florida, solar system users are exempt from paying sales tax on solar, significantly reducing the final cost of your system through the Solar and CHP Sales Tax Exemption. Solar is also exempt from property taxes for residential solar panels by the Property Tax Exclusion for Residential Renewable Energy Property exemption. This also means that county tax collectors can overlook a home’s solar system when assessing value. These statewide incentives are especially appealing to solar seekers who would be subject to sales and property taxes on any other home improvement investments.
There are also several other programs like net metering that can save additional dollars when you go solar. Our team of energy experts can assist with any financial questions while we customize a solar installation that works for you. Call Solar Bear Tampa at (727) 471-7442 or request a free estimate today.