reduce your tax bill, invest in solar panels
April 15th, the most dreaded day for Americans since its the last day to pay off the IRS. How much did you pay Uncle Sam this year? Some Americans paid less to the IRS this year by taking advantage of the generous tax credits given to homeowners and businesses to install solar panels that generate electricity or heat water.
Before 2009, individuals were capped at a $2,000 tax credit maximum, but this year was historic in terms of how much money people are receiving for installing renewable energy. Individuals and corporations can take a full 30% of the final installed cost of the system as a tax credit against your tax bill.
Deductions, reduce your taxable income, tax credits on the other hand are a dollar-for-dollar reduction of your tax liability. It’s quite simple to claim the investments you made in solar panels or wind turbines, take a close look at the Tax Credit section on the 1040, you’ll notice a renewable energy section in which you can enter the credit you qualify for. If you’re interested in learning more about the tax credits you qualify for installing renewable energy check out DSIRE.
