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Frequently Asked Questions
Will There Always Be Federal Tax Credits With Solar?
Setting up own solar system is a worthy investment for most owners, though it intimidates and frustrates those with a low budget. However, the US state and federal governments motivate residents who install solar by offering them a credit for their income tax. Hence, potential buyers wonder if there are always federal tax credits with solar.
Unless Congress renews it, the current tax credit ends in early 2024. The timeline is because of the extended Investment Tax Credit (ITC) in December 2020. There is a 26 percent tax credit for 2020-2022 installations and 22 percent for those in 2023. However, there is a decrease since those erected before December 31, 2019, got a 30 percent tax credit.
Types of Tax Credits
Tax credit or investment tax credit offers specific taxpayers a chance to subtract a certain amount from their state, local, or federal tax liability. Hence, it reduces your final tax bill as a taxpayer, though this provision excludes exemptions and deductions. To understand these incentives better and how to reduce your expenses, here are three basic outstanding tax credits:
All taxpayers will get their entire tax credit, whether with an income or tax liability. This refund occurs if your tax liability reduces below zero dollars. Typical examples are premium (health) and income tax credit under specific conditions for employed or self-employed persons.
You do not get a refund if the amount is more than the tax owed. This tax expires after one year with no carryforwards. Remarkable taxes include education, adoption, mortgage interest, and child and dependent care credits.
3. Partially Refundable
Here, the American Opportunity Tax Credit benefits post-secondary students. One qualifies when their reduced tax liability is zero dollars but before clearing the 2500 dollars for the deduction. The child tax falls under this category with up to 1400 dollars refund per eligible kid.
Qualifications for an Investment Tax Credit
US Residents and aliens may qualify for a tax incentive under a few basic rules. Below are a few outstanding examples.
- You should earn below $57,414 and invest below $10,000 during the tax year.
- Be a US citizen or alien the entire tax year. Aliens are immigrants lawfully admitted in the state or have a right to remain in the US.
- Install a complete solar system to generate electricity in your residence.
- The PV system should be new or in use for the first time between January 1, 2006, and December 31, 2023.
- The location of the system installed should be your primary or secondary dwelling.
- You MUST own the solar system within the US and not through a lease contract.
- Solar energy should not exceed your electricity consumption.
- Your social security number to be valid by the tax return due date.
- Homeowners, condominium members, or tenant-stockholders at a cooperative housing corporation who pay towards the implementation are entitled. Hence, their total amount spent will equal the tax credit claim.
So, now you may now go ahead and make a claim if you meet the above requirements. First, fill and attach the IRS Form 5695 to your federal tax return. To avoid any mistakes, follow these instructions to complete your request.
Setting up an alternative energy source saves you extra bills. Hence, invest in a solar system and qualify for the federal tax credits with solar. Would you love to install your solar PV system today? myflorida's Solar services Ormond Beach, Palm Coast, Daytona Beach, and Port Orange, and we appreciate the support of our communities. Contact myflorida's Solar or request an estimate at (866)447-6572 and enjoy our competitive rates.
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Will Solar Power Work on Rainy Days?
Solar power is generated through sunlight absorbed by solar panels. Solar PV's are usually installed on roofs or mounted on the ground with the least shade possible to get the most sunlight. Come rainy days, some would worry if their solar panels would generate enough power or many would wonder if solar power can work on rainy days at all.
It is still officially summer in the Sunshine State. While some of us prepare for hurricanes around this time of the year, it is safe to say that for most of the year, Florida enjoys a whole lot of sunshine. It is still most ideal to know more about how we can get most out of our solar power system when the rainy days come.
The short answer to the question above – solar power will still work on rainy days. Solar panels may produce about 25% of their usual capacity on very cloudy days. This could cause some homeowners to worry especially if solar is their main source of power. One great way to solve this is through a solar battery back-up system.
A solar battery stores the power generated by your solar panel system on sunnier days. This stored power can be used on days when the solar panels cannot generate as much power such as on cloudy and rainy days.
It is also great to know that rain is not all that bad for your solar panels. Although there are some precautions you have to take such as:
- Make sure the solar panels are attached and installed properly on very stable and even surfaces to keep them in place especially during bad weather conditions.
- Make sure there are no hazard trees or overgrown trees surrounding your solar panel system which can cause damage to the panels.
The main benefit of rain to your solar panels is that it can help cool down the panel's surface, which is a great thing. The sunlight is used to generate solar power – not the heat from the sun. So this means that as long as there's light coming from the clouds' edges even on rainy days, your panels can still generate power. Furthermore, rain can wash away dirt, pollen, dust, and other foreign objects from your solar panels!
If you want to be sure that your solar power system is prepared for the coming rainy season, call myflorida's Solar! Our team can help do a thorough solar maintenance Deltona check on your solar panels New Smyrna Beach, clean them when necessary, and install solar battery back-up Ormond Beach upon your request. Call us at (866)447-6572 to get a free estimate!
Why Is Solar Energy Good?
Solar energy is good in so many ways. First of all, it is a clean and renewable source of power because it uses the power that comes from the sun. And since the sun shines freely all day, every day, even on cloudy days, then there's much power to go around and use if you have solar panels installed in your property.
Some people would claim that solar energy is not as good and as clean as it seems since there's still some carbon footprint produced when building the materials used for it and transporting them for installation. While that's true in some sense, you have to keep in mind that the moment your solar panels are installed, especially when they are installed properly by professionals, then it is expected to last for many years, even decades. It is not high-maintenance and operating costs are minimum or close to none. So if you will compare some hours spent in making the materials, transporting them, and installing the solar panel system to the many years you will be using clean energy, then solar is still a great choice.
Solar Panel Installation in Palm Coast, FL
So why is solar energy good? It gives you the opportunity to use a clean source of power for your residential or commercial property. After the installation and material costs, you're practically using free energy coming from the sun! If you're interested to learn more about solar power or to get solar PV installation for your property, myflorida's Solar is here to help. We serve Palm Coast, Debary, New Smyrna Beach, St. Augustine, and many other areas across Florida. Just call us at (866)447-6572 to get a free estimate. You may also request a quote or schedule a free consultation!