30% tax credit - what is it and how do you get the cash.
I've been planning to install either a solar or wind power system for a while. There are a lot of things to consider - which technology to use, where to install it, and how much to spend. When considering the project, the installation and any professional services have to be included for a realistic final cost. Although the materials can be considered a large expense, sometimes the property and installation cost can be high as well.
I found a lot of references to a 30% tax credit for solar or wind systems but none of them had any specific details on what could be eligible for the 2018 US IRS personal income tax credit. It didn't take long to find IRS Form 5695, and it had all the information I needed.
It states " You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, and fuel cell property. Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to interconnect such property to the home".
There are some exclusions and limitations, so be sure to consult a tax attorney.
Having a 30% tax credit on my next tax return just made this project a whole lot more interesting.
Find more information about the 30% tax credit at https://www.CuttingEdgePower.com.