Solar System Tax Credit Form

To claim the credit you must file irs form 5695 as part of your tax return.

Solar system tax credit form.

If say your federal taxes are 6 000 for 2020 and you re eligible for a 7 000 tax credit for installing a solar system at your house you can claim the leftover 1 000 as a credit toward your. A nonrefundable individual tax credit for an individual who installs a solar energy device in taxpayer s residence located in arizona. Use form 5695 to figure and take your nonbusiness energy property credit and residential energy efficient property credit. If you end up with a bigger credit than you have income tax due a 3 000 credit on a 2 500 tax bill for instance you can t use the credit to get money back from the irs.

Download 137 61 kb download 1 62 mb 01 01 2020. Download 133 21 kb. The federal solar tax credit also known as the investment tax credit itc allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes. Filing requirements for solar credits.

Form year form instructions published. Information about form 5695 residential energy credits including recent updates related forms and instructions on how to file. You calculate the credit on the form and then enter the result on your 1040. Form 5695 calculates tax credits for a variety of qualified residential energy improvements including geothermal heat pumps solar panels solar water heating small wind turbines and fuel cells.

We ll use the national average gross cost of a solar energy system as an example.