Solar energy is a renewable and a clean source of energy. It can be an extremely good alternative to non-renewable sources of energy like coal, natural gas and petroleum.
Tax benefits of Solar panels
The Government provides tax benefits for solar energy users because they want to encourage people to switch to solar energy panels. The solar energy investment tax credit (ITC) provides a 30% tax credit on the cost price of the solar system. This is for residential purposes. For commercial purposes, a tax credit of 10% is valid. The system of tax credits started in the year 2015. In the year 2015, 10% tax credits were given. In 2017, it was increased to 30%. This implies only if you buy the system and not take it from a third party. In that case, the consumer will get the lease.
How to claim the tax?
The tax litigation in the U.S. changes constantly so it is important to stay up-to-date on all of these changes to ensure you’re taking full advantage of the benefits offered. Therefore, it may be in your best interest to hire a CPA or tax professional to help you. If you’re confident that you have a good understanding of the tax code, then you can use a reputable tax software such as TurboTax Deluxe. Whatever process you choose, the steps remain the same:
- Fill the IRS Form 5965 completely.
- Your claim and tax credit will be verified.
- Your form 1040 will be shown with all the details.
Why a tax benefit is provides on solar roofing installations?
To help people opt to an eco-friendly and sustainable environment, it’s very important to encourage them and create awareness about it. This also excites the people and makes them switch to solar panels. The major advantages of solar panels are:
1) Environmental-friendly: Solar energy panels do not cause any sort of pollution. They are produced by converting the light energy from the Sun into electrical energy. Hence there is no release of any harmful gases to the environment.
2) Non-exhaustible: They are a natural source of energy and can be replenished. They are a boon for the future generations when fossil fuels will be no more to be used. Hence it creates a sustainable future.
3) Does not cause Global Warming: Global warming is an alarming phenomenon. Due to the release of carbon dioxide, methane and other greenhouse gases the carbon levels are increasing which is affecting the environment in diverse ways.
4) Cost-effective: They are cost-friendly and fit the budget. They have a wide variety of systems which can also be customized according to the electricity intake and requirements.
5) Does not occupy a large space: They do not need any extra land or space for installation. They can easily be installed on the roofs of the building.
It’s because of these advantages that the US Government too promotes solar roofs by providing tax benefits and other incentives. Some of the best solar installation contractor in the US for solar roofing installation is:
- Synchronicity Solar: They have their headquarters in Asheville, Greenville, WNC, Upstate SC and have around more than 100+ employees. Their well-trained team provides good service to their clients.
- Ormat Technologies: They have their headquarters in Reno, NV and have around 1000 employees. They design solar rooftops and provide them.
- Next Era Energy: They have their headquarters in Juno Beach, Florida and have more than 1000 employees. They have a dedicated and committed team and carry out their work with excellence.
- Suniva Inc: They have their headquarters in Norcross, Georgia and have around 500 employees. They make high-efficiency solar cells and roofings and are a reliable company.
- Global Solar Energy, Inc: They have their headquarters in Tucson, Arizona and have 200 employees. They provide solar panels for domestic and commercial purposes and also for mobile applications.
- Sun Power Corp: They have their headquarters in San Jose, California. They offer their services for residential and commercial purposes. They have a professional and dedicated team who perform their work with professionalism.
Solar energy panels are gaining popularity because of its advantages and the tax benefits. Businesses, corporate owners are also installing solar roofs to promote a cleaner and greener environment. Government taking measures for it and providing tax benefits is in turn beneficial for the environment. Solar roofings can easily be installed via a solar roofing installation company. But it is advisable to look for a certified, professional and an authentic solar installation contractor. They ensure to do their work properly and also guide for proper maintenance of the solar installation.