You may have heard stories about people being misled and fed false information by solar panel salespeople. Falling prey to these scams can end up costing you thousands of dollars. Make sure you do your due diligence before purchasing solar panels for your home.
Some sales reps may tell you that solar panels are eligible for a 30% tax credit and that time is running out to claim this credit. Not to throw “shade” on their sales tactics, the current guidelines call for the federal solar tax credit to remain in effect until at least 2032. However, to find out if you actually qualify for this credit, you will need to know:
Are the Solar panels being sold to you eligible for the credit?
IRS Form 595 spells out the instructions for what solar panels qualify for the Residential Energy Credit.
“Some solar roofing tiles and solar roofing shingles serve the function of both traditional roofing and solar electric collectors, and thus serve functions of both solar electric generation and structural support. These solar roofing tiles and solar roofing shingles can qualify for the credit. This is in contrast to structural components such as a roof’s decking or rafters that serve only a roofing or structural function and thus do not qualify for the credit.”
To qualify for this credit, you need to be sure that your solar panels are not structural.
Learn more about residential energy property credits by reading the IRS’s FAQs.
Do you qualify for a tax credit?
A tax credit is a credit that decreases your federal income tax liability. If you are retired, a disabled veteran, or fall below the filing threshold you may not qualify for this credit.
Remember, before committing to any purchase which claims to have a tax implication, always consult a tax professional and do your due diligence.
If you need help finding a tax return preparer, vising our Get Help page for more information. For more updates from the Taxpayer Advocate Service, visit the news and information center to read the latest tax tips, blogs, alerts and more.
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