Unlock Your Solar Potential &

Get Rewarded with the IRA Tax Credit

Unlock significant tax benefits on your solar energy investment.
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Unlock Your Solar Potential &

Get Rewarded with the IRA Tax Credit

December 7, 2023

Harness the power of sunshine and maximize your savings with the generous 30% federal tax credit available under the Inflation Reduction Act. This incentive makes solar energy more affordable than ever, allowing you to significantly reduce your energy costs and contribute to a greener future. Here's how you can claim your 30% solar tax credit for 2024:

1. Qualify for the Credit:

  • Own your solar system: The system must be installed on your primary or secondary residence located in the United States.
  • Meet size and efficiency standards: Ensure your system meets the minimum power output and efficiency requirements set by the IRS.
  • Place the system in service by December 31, 2024: Your system must be generating electricity by the end of 2024 to qualify for the credit.

2. Calculate Your Credit:

  • Determine your total system cost: Include the price of panels, installation, and related equipment.
  • Multiply the total cost by 30%: This will give you the amount of credit you are eligible for.

3. Claim Your Credit:

Option 1: Form 5695:

  • Complete and submit Form 5695, Residential Energy Credits, with your federal income tax return.
  • Claim the credit directly against your tax liability.

Option 2: Reduce Your Tax Basis:

  • Reduce the basis of your solar system by the amount of the credit.
  • This will lower your taxable gain when you sell your home.

4. Keep Your Documentation:

  • Maintain all relevant documentation related to your solar system installation, including invoices, receipts, and permits.
  • These documents may be necessary if the IRS requests verification of your claim.

Frequently Asked Questions:

Does Income Matter for the IRA Tax Credit?

No, income does not affect your eligibility for the IRA 30% solar tax credit. Anyone who meets the basic criteria can claim the credit.

Is the IRA Solar Tax Credit Refundable?

While the IRA 30% solar tax credit is non-refundable, you can carry over any unused credit to future tax years.

Where Can I Learn More About the IRA Tax Credit?

You can find detailed information about the IRA 30% solar tax credit on the IRS website, the SEIA website, or the Inspire Solar website.

Claiming the IRA Tax Credit: Additional Tips with Inspire Solar

Inspire Solar offers comprehensive support to help you maximize your savings with the IRA 30% solar tax credit. We provide expert guidance, tax preparation assistance, financing options, and solar installation services to ensure a smooth and efficient solar journey.

Contact Inspire Solar today to learn more and get started on your solar energy journey.

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