Federal Tax Credit 2023
How To Claim the Federal Solar Tax Credit
You can get a 30% tax credit on the total cost of your solar generator! Just purchase your system before the end of 2023 and claim the credit on your 2023 taxes!
You claim the solar tax incentive as part of your annual federal tax return with the Internal Revenue Service (IRS). We have listed the essential steps in claiming the credit here:
- First, download IRS Form 5695 as part of your tax return.
- Then, on Part I of the tax form, calculate the credit. You file your solar system as “qualified solar electric property costs.” Then, on line 1, enter your project’s total costs.
Who Qualifies
You may claim the residential clean energy credit for improvements to your main home, whether you own or rent it. Your main home is generally where you live most of the time. The credit applies to new or existing homes located in the United States.
You can't claim the credit if you're a landlord or other property owner who doesn't live in the home.
You may be able to claim a credit for certain improvements made to a second home located in the United States that you live in part-time and don't rent to others. You can't claim a credit for fuel cell property for a second home or for a home that is not located in the United States. Find more on qualifying residences.
- Ownership: You own the solar PV system. You cannot claim the credit if you are leasing or in an agreement to purchase electricity generated by the system, including a solar power purchase agreement (PPA).