Finance
Eco friendly solutions have many benefits, including tax incentives. What are tax incentives, and how do you get them?
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What are tax incentives?
Tax incentives are policies that the government puts in place to encourage people to buy or use some things, like green energy. For example, in some states, if you install solar panels, the government will take a percentage of the cost off of the taxes that you have to pay that year. The money that they take off is called tax credit.
Some tax incentives that you can take advantage of now:
Residential Clean Energy CreditTax Credit = 30% of the costs of new, qualified clean energy for your home
Energy Efficient Home Improvement CreditTax Credit = 30% of qualified expenses, like the cost of the energy efficiency improvements or home energy audits, up to $3,200
How do tax incentives vary across the country?
Although the federal government does offer renewable energy incentives, some states and cities also offer additional ones! Examples below.
Philadelphia exclusive:
Philadelphia Solar RebatePennsylvania (PECO) exclusive:
PECO Net Metering
Where can I claim my tax credit?
In order to claim your federal tax credit, you must file the form below with the IRS. Check thoroughly to make sure you're eligible for the tax credit before filing.
Residential Energy Credits Form 5695If needed, here are some instructions:
InstructionsIf you're looking to claim state or city incentives, the method to do so varies. Check local sources in order to gain a better understanding of how you can do it.