Residential Solar Tax Credits – What You Should Know Before Filing in Massachusetts
Posted: Tuesday, 4/11/17 @ 3pm EST
Ok, I admit, this post is a tad bit late because I forgot about taxes until last weekend. I know, it’s the same every year, get your taxes post marked by the April 15th (or the Monday after); but somehow, this year, between work, family and play, it completely slipped my mind. However, I did happen to get them done – and it was quite the return, thanks to installing a 6.5kW solar panel system on my roof.
DISCLAIMER: While this blog post discusses solar tax credits and filing your returns, you should ALWAYS consult your tax professional for your specific situation. We do not assume responsibility for your tax situation or credits.
Federal Tax Credit Eligibility
What are the tax incentives for installing solar panels in Massachusetts?
What do these tax credits really mean for the average solar customer?
Here’s an example.
Sally Solar Panel purchases a solar system for $25,000. 30% of that is $7,500 and 15% is $3,750.
On Sally Solar Panel’s federal tax return (form 5695 – complete instructions located here), she can claim a $7,500 tax credit. If she had enough federal tax liability, she will be able to claim the full 30%.
On her state tax return, she can claim the full $1,000 since it’s less than 15% of the total system cost (as long as she has enough state tax liability).
This article does not discuss the SREC incentive for owning a solar panel system, quarterly SREC payments, or how to claim them. This article describes the tax credits solar panel system owner may receive. Remember, everyone’s tax situation is different, so please consult a tax professional.
Director of Marketing at Boston Solar