What Are Federal Solar Credits And How To Claim Them In Tax Returns?

The federal solar tax credit, also known as the Investment Tax Credit (ITC), will be at a reduced rate in 2022 and beyond.

To claim the federal solar tax credit, you will need to file IRS Form 5695 “Residential Energy Credits” with your federal tax return. You will also need to provide documentation of the cost of your solar energy system installation, such as receipts, invoices, or contracts.

It’s important to note that the tax credit is based on the date of construction, not the date of installation or when the system becomes operational.

Keep in mind that the tax credit can only be claimed by the property owner who owns the solar energy system. If you have any questions about claiming the federal solar tax credit, it’s best to consult with a tax professional or financial advisor,” shared Daniel Ahart, chief tax officer at the tax preparation company Daniel Ahart Tax Service®.

Here are the current rates for the federal solar tax credit:

• For solar energy systems that begin construction before January 1, 2022, the tax credit is equal to 26% of the cost of the system.
• For solar energy systems that begin construction between January 1, 2022, and December 31, 2022, the tax credit is equal to 22% of the cost of the system.
• For solar energy systems that begin construction between January 1, 2023, and December 31, 2023, the tax credit is equal to 10% of the cost of the system.
• After December 31, 2023, the tax credit will no longer be available for residential customers, but commercial customers will still be eligible for a 10% tax credit.

It is very important to take a moment to remember your own history during the year, in this way we reduce the risk of forgetting anything that needs to be reported on your tax return.

Remember that every person and every tax return is different, this is just a guide, please find the closest DATS location near you and do not hesitate to contact us. Daniel Ahart Tax Service will be open and ready to answer the phone or in person to clarify any doubts and to be able to guide you in the process,” explains Daniel Ahart, chief tax officer at the tax preparation company Daniel Ahart Tax Service®

Taking Care of your Crypto Taxes

Also, remember that if you have any crypto tax obligations for the 2022 tax year, you need to report it. Join the thousands of individuals in the State of Georgia that trust their taxes to Daniel Ahart each year!

Schedule An Appointment

Appointments are encouraged so that we are able to limit the number of people in our office.  We ask that you come by yourself or with your spouse.  Don’t bring extra people such as children.

Use our tool to find the office nearest you or click on a city link below.  You will find office information and a link to schedule and manage your appointment on the office page.

Search For An Office

Select office for contact information or to schedule an appointment.