For Your Home

Using the Solar Tax Credit to Your Advantage

Here’s how it works:

1. Have your solar system installed
2. When you file for your federal taxes (typically around April of the year after you installed your solar system) let your tax preparer know you installed a solar system. 30% of the total project cost is eligible for the solar tax credit. NOTE: the solar tax credit is a tax-based incentive that is dependent on your federal tax liability. It is NOT a rebate or a cash pay out. YellowLite is not a tax professional and these statements are meant to generally inform about the solar tax credit, but should not be taken as tax advice. Please consult a tax professional to see how the solar tax credit works for your personal tax situation, especially if you are retired or have a unique or low federal tax liability prior to making your final decision on solar.
3. If you get your entire solar tax credit back as a tax refund, you can put the tax credit money back into your solar loan to help pay it off and reduce the interest you pay on the tax credit portion–almost one third of the loan!