2018 Solar Tax Credits: What Are They?
There is only one, 2018 solar tax credit available in Oregon: The Residential Investment Tax Credit offered by the federal government.
This tax credit is often called the "Federal Solar Tax Credit" or the "Residential ITC." It is worth 30% of the total cost of a solar installation. There is no maximum.
The Federal Solar Tax Credit applies to solar electric, PV and solar hot water installations. You must subtract any cash incentives from the total cost before you take the credit. ...Details are below.
This tax credit is often called the "Federal Solar Tax Credit" or the "Residential ITC." It is worth 30% of the total cost of a solar installation. There is no maximum.
The Federal Solar Tax Credit applies to solar electric, PV and solar hot water installations. You must subtract any cash incentives from the total cost before you take the credit. ...Details are below.
Are There Any Oregon State Solar Tax Credits in 2018?
No. There are not.
The Oregon Residential Renewable Tax Credit program (often called the "RETC" or the "Oregon Solar Tax Credit") has ended.
Effective January 1st, 2018, the state of Oregon does not offer any tax credits for solar energy installations. There is no plan to renew this program.
The Oregon Residential Renewable Tax Credit program (often called the "RETC" or the "Oregon Solar Tax Credit") has ended.
Effective January 1st, 2018, the state of Oregon does not offer any tax credits for solar energy installations. There is no plan to renew this program.
Are There Other Solar Incentives Available?
Yes!
The Energy Trust of Oregon responded to the end of the Oregon Solar Tax Credit with a large cash incentive increase for 2018. This incentive pays cash for solar energy installations to homeowners that qualify.
Conditions apply.
The Energy Trust of Oregon responded to the end of the Oregon Solar Tax Credit with a large cash incentive increase for 2018. This incentive pays cash for solar energy installations to homeowners that qualify.
Conditions apply.
How Much Is the Federal Solar Tax Credit Worth in 2018?
The amount of the credit depends on the total cost of solar for your home. You must subtract cash incentives first.
The Federal Tax Credit is worth 30% of the total, invoiced cost of going solar. This includes installation and labor costs.
The Federal Tax Credit is worth 30% of the total, invoiced cost of going solar. This includes installation and labor costs.
( Total COST - CASH Incentive ) X 30% = TAX CREDIT VALUE
Is This Tax Credit the Same as a Deduction?
No it is not.
A deduction only lowers your total taxable income amount. This does reduce your taxes, but by a significantly smaller margin.
A tax credit, on the other hand, is a dollar-for-dollar credit against your taxes. This means it operates just like a cash payment.
A deduction only lowers your total taxable income amount. This does reduce your taxes, but by a significantly smaller margin.
A tax credit, on the other hand, is a dollar-for-dollar credit against your taxes. This means it operates just like a cash payment.
What If I Can't Use the Entire Credit This Year?
No problem!
you can easily pass any unused portions of the credit forward to future years.
you can easily pass any unused portions of the credit forward to future years.
How Do I Qualify for the Federal Solar Tax Credit?
You must own the solar panels and the property on which they are installed. You must also live at that property at least part of the year to claim the Residential ITC.
If you are installing the solar panels on a rental property that you own, you can still claim a solar tax credit. However, you will need to use the Commercial ITC (and treat your installation as business property).
If you are installing the solar panels on a rental property that you own, you can still claim a solar tax credit. However, you will need to use the Commercial ITC (and treat your installation as business property).
Does the Federal Solar Tax Credit Apply to a Solar Lease?
No. It does not.
You must own the solar panels and the property on which they are installed. In a solar lease, an outside company owns your solar panels, takes the credits and incentives, then charges you for electricity.
You must own the solar panels and the property on which they are installed. In a solar lease, an outside company owns your solar panels, takes the credits and incentives, then charges you for electricity.
Is There a Dollar Estimate for the Tax Credit?
Yes there is!
However, you must have an estimated cost for your solar panel installation to calculate it.
We have developed a sample cost of solar page to help. The general estimates you find there will get you started, but of course, they are not meant to be exact. Your own costs might vary.
However, you must have an estimated cost for your solar panel installation to calculate it.
We have developed a sample cost of solar page to help. The general estimates you find there will get you started, but of course, they are not meant to be exact. Your own costs might vary.
How Do I Claim the Federal Solar Tax Credit?
To claim the federal solar tax credit for 2018, you will need to:
That's it! If you'd like to see it now, simply contact us and we can get one to you.
In addition, we will take care of your cash incentive paper work with Energy Trust and arrange for all official inspections and certifications. However, remember that conditions apply to the Energy Trust of Oregon Cash Incentive program, so give our article a read to see if you qualify:
- Complete the installation in 2018.
- Ensure you have the receipt for your purchase.
- Be able to prove that you own the property on which the panels are installed.
- File form 5695 from the IRS with your 2018 tax return.
That's it! If you'd like to see it now, simply contact us and we can get one to you.
In addition, we will take care of your cash incentive paper work with Energy Trust and arrange for all official inspections and certifications. However, remember that conditions apply to the Energy Trust of Oregon Cash Incentive program, so give our article a read to see if you qualify:
Please Note: Synchro Solar provides this information as a convenience. Please consult your accountant or tax-preparer to analyze your unique tax situation.