As an incentive for clean energy in the US, homeowners who use #solar systems are entitled to a federal solar tax credit, which is 30% of the solar system cost in 2019. (Investment Tax Credit)
For example, if your expenses for buying and installing the solar system are $30,000 in 2019 after discounts, the amount of tax credit available to you is $30,000*30% = $9,000.
Important: To be able to claim the Residential Energy Credit on Form 5695 for individuals (Form 3468 for businesses) for solar energy property, you have to be the owner. It cannot be leased or purchased by PPA.
Note that the credit is nonrefundable – your tax liability will be reduced by a certain amount and any unused amount will be carried forward to the next year. Section 25D of IRC states that federal tax credit will be reduced to 26% in 2020 and 22% in 2021.
NY State solar tax credit (Form IT-255) can reduce your state tax payments by 25% of your total solar energy expenses up to $5,000. (In our example it would be $5,000). The NY State Solar Equipment Tax Credit applies to you even if you sign a lease or PPA.
There are many other state and local incentives.
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