It’s tax season!

Did you purchase a solar system in 2021? If you did then you should qualify* for The 26% Federal Investment Tax Credit (ITC), which means you can deduct 26% of the cost of your purchase from your 2021 tax liability!

Fill out the Proper Forms & File.

  • Fill out IRS Form 5695, “Residential Energy Credits.” Follow IRS Instructions for 5695 to complete this form. You’ll need to know the qualified solar electric property cost. You can find this number on your Contract or All Paid receipt dated 2021. Follow IRS Instructions for 1040 to complete this form. Keep all your receipts from the purchase in your records in case of an audit.

If your Federal Investment Tax Credit (as determined by IRS Form 5695) exceeds your 2021 tax liability, then talk to your tax advisor about how to claim the remainder of the credit for next year.

* Check with your tax advisor before determining the best path for you.


Sarah Nagel