The Inflation Reduction Act (IRA) offers a game-changing opportunity for homeowners to save on solar installations through the 30% federal tax credit. This article breaks down how the IRA Tax Credit works, who qualifies, and how Inspire Solar can help you maximize your savings.
What Is the IRA Tax Credit?
The IRA Tax Credit allows homeowners to claim 30% of the total cost of their solar energy system as a credit against their federal taxes. This includes:
- Solar panels
- Installation costs
- Battery storage systems
Eligibility for the IRA Tax Credit
To qualify for the IRA Tax Credit, homeowners must:
- Own the solar system (not lease it).
- Install the system on their primary or secondary residence in the U.S.
- Ensure the system is operational by December 31, 2024.
How to Claim the IRA Tax Credit
Step 1: Calculate Your Credit
Multiply your total system cost by 30% to determine your eligible credit amount.
Step 2: File IRS Form 5695
Complete and submit IRS Form 5695 (Residential Energy Credits) when filing your federal taxes.
Step 3: Apply the Credit
Use the credit to reduce your federal tax liability. If you don’t use the full amount in one year, it rolls over to the next year.
Maximizing Your Savings
In addition to the federal credit, homeowners can take advantage of:
- State Incentives: Many states offer additional rebates or property tax exemptions for solar installations.
- Net Metering: Sell surplus energy back to the grid and earn credits.
- Solar Loans: Financing options that allow you to spread out costs while still claiming the tax credit.
Why Work With Inspire Solar?
Inspire Solar simplifies the process of going solar by providing:
- Personalized consultations to estimate your savings.
- Guidance on filing for the IRA Tax Credit.
- Access to trusted installers and financing options.
