Tax Savings from Solar Roofing Installations
Solar roofing has become an increasingly popular home renovation choice for many Bay Area residents. In an effort to lower American dependence on coal, oil, and gas, both the federal and state governments offer tax incentives for homeowners who explore alternative energy options. If you use solar solutions to power your home, you can receive these tax credits.
In order to receive tax benefits from a solar roofing installation, homeowners must owe and pay taxes. This means that homeowners with no tax liability will not receive any tax credits, because the credits can only lower the amount of tax due. Fortunately, alternative energy credits can roll over into the next year, lowering any new taxes that a homeowner may have to pay.
Any homeowner who has completed a solar system installation between 2009 and 2016 is eligible to receive a federal tax credit. However, if you choose a third party to manage your solar system, that party will generally receive the tax credit instead of you. These credits apply to primary homes, new constructions, and second homes, but they do not apply to rental homes. Before installing alternative energy sources, homeowners should explore the possible tax credits they can obtain as well as review financing options.