April 15th is quickly approaching, and NATiVE would like to remind all of our eligible solar customers to claim the 30% Investment Tax Credit (ITC) on their federal tax returns! We urge those of you claiming the ITC to work with a tax professional to ensure your tax benefits are claimed and filed correctly.
Our customers that purchased, and had a NATiVE solar system installed on their home in 2017, may be able to claim a 30% federal income tax credit under Section 25D of the internal revenue code. Our commercial customers are eligible to claim a credit under Section 48 of the code.
The tax credit, a dollar-for-dollar reduction against one’s tax liability, is governed by strict eligibility criteria and rules.
Both the residential and commercial ITC are set at 30% through 2019. After that, the ITC is scheduled to decline from 30% to 26% in 2020 and 22% in 2021.
If you had NATiVE install a battery storage system for your home solar PV system in 2017, you also may be eligible for the ITC on your federal tax return. The federal tax code does not explicitly reference energy storage, so stand-alone energy storage systems do not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems. In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a “qualified solar electric property expenditure,” as was eligible for the tax credit. It is important to note that Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent. Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit. You can read more about the ITC and Battery Storage here.
Note: NATiVE is can not provide tax advice. Please consult your accountant or tax professional.
federal tax returns federal tax returns federal tax returns federal tax returns federal tax returns federal tax returns federal tax returns
solar tax credit solar tax credit solar tax credit solar tax credit solar tax credit solar tax credit solar tax credit solar tax credit