Thank you!!!! As a solar professional (who actually has ethics), I spend a lot of time explaining this credit to potential customers. This is a clear and easy to understand explanation that I can share with customers with confidence that they are not being misled.
I loved your video, I was able to understand most of the information. I would have loved if you could have a visual presentation with form 5695. I appreciate your free advice to watch out for solar venders. Thanks!!!
Thank you, I was misled.Solar company told me in 2022 I would get $10.000 back and I could use it to pay down my solar loan or keep it. Looks like I'm not gonna get a dime cause I usually don't owe.
It's not based on if you owe on your taxes it's based on your tax liability. For example if you have a tax liability of $10,000 and you receive $2,000 back each year with the solar credit of $10,000 you'll receive $12,000 back. If your tax liability is lower than $10,000 you won't receive it all in one year but you can continue to roll it over. Hope this helps
can you please clarify 30 percent federal solar tax credit if its on the total value of net installation cost or minus Renewable Energy Credit ? For example if the installation cost without any incentive is 30 k and then you get energy credit 15K ... is 30 percent calculated on 30 k or 15k for federal tax credit ?
Are you asking if you can personally claim the credit as an individual, the answer is no. This is meant for projects and facilities that operate in energy communities as defined by the IRS not the actual homes in that community.
Hi Ryan! I have purchased solar few years(2022) back and used/claimed the fed solar tax credit. But want to add some more solar panel on the same home(primary resi)now(in 2024) since the previously installed one is not enough. Can I still get/claim federal solar credit for the ADDITIONAL solar system investment on the same home?
If they are two separate systems then yes you can claim the tax credit for 2024 also. But if it is the same system, the credit can only be claimed once. In your case, it is a yes as in you can claim additional tax credit for the new panels.
I got a system with solar panels and battery storage a couple of years ago and I still have some carry forward for the 2024 tax year. However, I have a huge tax liability this year, and thus I would like to have a second system installed on the same house that I still live in. I know you already answered that you can claim the credit again, if it's a separate system, but I wonder if that would cancel out my carry forward from the original system? Or will it just add up. Also, if I get a second power storage system, will I be able to get the rebate again for those too? Or are battery storage systems handled differently? Thank you!
Would I qualify for the federal tax credit if I pay a 3rd party (Plastiq) with a credit card and then Plastiq issued a check on my behalf to the solar company? Note I am the owner of the panels.
I installed panels back in 2019 and received the tax credit. We financed the panels over 5 years and didn't do a PPA or lease agreement with the installation company. On our taxes it was just an additional 5695 form we had to fill out and submit for that year. It was relatively easy all in all. However, I knew my tax situation well and understood that I was getting back the taxes I had already paid for that year. The difference between a deduction and a credit can trip a lot of people up!
@johnfitbyfaithnet no, but good luck finding an installer willing to install used equipment. I never pull permits and just DIY everything so i wouldnt be afraid of used equipment for the right price, but I'm an electrical engineer and know what I'm doing.
@johnfitbyfaithnet Here is a brief expansion on your inquiry. In some cases, used equipment can qualify, but the following requirements must be met: First-time installation: The solar equipment must be installed in your home or business for the first time. Even if the equipment was previously used elsewhere, it must not have been claimed for the ITC before. Operational condition: The equipment must be in good working order and capable of generating electricity as intended. As always, do your diligent research, however consult with a knowledgeable tax person
I have a question and hope someone can help me with this. I understand that in order for the cost of the battery to be eligible for the tax credit, the battery needs to have a storing capacity of 3000 or more wh. so, could I buy like 2 Ecoflow delta max that has 2000 wh each but 2 would put me at 4000. would that still work, or would it has to be from one unit?
1. You must prove the system is operational, I can think of either providing copies of your utility statement to show excess/import power to the grid, however some systems do have integrated production software that does a neat job of demonstrating production via graphs etc 2. System installation on your primary residence. I don't know if it will qualify for non-primary residence projects 3. Cost of equipment and any contracted labor costs ( electrician, permits etc ) . You will not be paid for your DIY labor costs.
I withdraw $20000 from my 401k account last year and invested into a solar system for my house. Will the solar tax credit offset my tax liability for my 401k withdrawal?
@user-gx8pc7qp9r OMG!!!! Why TF would you do that!!???? Lol of course you will have to pay tax penalties for the withdrawal if you are not of the proper age. Even if you are the correct age you WILL owe taxes on the gains of that $20k. You will first pay taxes on that withdrawal then subtract credits. Depending how old you are, the credits will not be enough to cover income tax and penalties
Why invest in solar panels when the sp500 out preforms solar. I just put $20k into a money market account and the monthly interest pays off the electeic bill.
@devonthompson9922 you have alot to learn about money. The reason to invest money in anything other than solar panels is liquidity. In ten years when I move, I can take my investments with me. If I have my money in solar panels then I have to hope the next person is willing to pay money for the panels on the house. Not to mention panels are a depreciating asset unlike the stock market.
@@thedude5040 Panels aren’t for everyone as peoples have different situations. But a family that’s struggling to pay high electric bills don’t have 20k cash to invest and can actually take advantage of a fix solar payment instead of the forever increasing electric bill. While also depending on the market they live in add value to their home.
You may. It depends. If your tax refund (before solar credits) is less than your total liability, you may still receive more of a refund for your solar Tax credits
I am retired and have no earned income. I have a $9000 tax credit from my solar panels. So I took a $10,000 from mine Aira and transferred into my Roth Ira. I’m showing $10,000 of extra income on my tax return.will that work in this scenario? Can I take the 8000 9000 tax credit and apply it to a Roth transfer. Not earned income.
As a solar salesperson I find your opinion offensive. You could have talked about how the credits work without bashing an entire industry and sales people in general.
Thank you!!!! As a solar professional (who actually has ethics), I spend a lot of time explaining this credit to potential customers. This is a clear and easy to understand explanation that I can share with customers with confidence that they are not being misled.
Good stuff on solar credits (refundable vs non-refundable)…wish more consumers would learn about this when purchasing solar…Will share it!
Thanks for the information. You just saved me from signing a bad contract!
I loved your video, I was able to understand most of the information. I would have loved if you could have a visual presentation with form 5695. I appreciate your free advice to watch out for solar venders. Thanks!!!
Thank you, I was misled.Solar company told me in 2022 I would get $10.000 back and I could use it to pay down my solar loan or keep it. Looks like I'm not gonna get a dime cause I usually don't owe.
It's not based on if you owe on your taxes it's based on your tax liability. For example if you have a tax liability of $10,000 and you receive $2,000 back each year with the solar credit of $10,000 you'll receive $12,000 back. If your tax liability is lower than $10,000 you won't receive it all in one year but you can continue to roll it over. Hope this helps
Me tii
Me too
If I get a federal refund every year should I halt the fed from taking the taxes out by modifying my w4? So that my credits actually get used?
We have tried to claim our solar for the past 2 years. Will it finally work this tax season?
can you please clarify 30 percent federal solar tax credit if its on the total value of net installation cost or minus Renewable Energy Credit ? For example if the installation cost without any incentive is 30 k and then you get energy credit 15K ... is 30 percent calculated on 30 k or 15k for federal tax credit ?
are portable panels and a power station (with 3k battery setup) eligible for tax credit?
@@SalProcopio no
Does the Federal Energy Community Tax Bonus Credit (10%) apply to single-family homes, if the home is located in a qualifying area?
Are you asking if you can personally claim the credit as an individual, the answer is no. This is meant for projects and facilities that operate in energy communities as defined by the IRS not the actual homes in that community.
Yes. What does it mean when the solar loaning company says you can pay them with your credit to keep the payments low on the solar loan
@@Grace.creations27 it means you are a poor person and shouldn't be doing this deal.
Hi Ryan!
I have purchased solar few years(2022) back and used/claimed the fed solar tax credit. But want to add some more solar panel on the same home(primary resi)now(in 2024) since the previously installed one is not enough. Can I still get/claim federal solar credit for the ADDITIONAL solar system investment on the same home?
If they are two separate systems then yes you can claim the tax credit for 2024 also. But if it is the same system, the credit can only be claimed once. In your case, it is a yes as in you can claim additional tax credit for the new panels.
Appreciated the reply 👍
Thanks brother. Good stuff. I got very helpful info from the vid. Thumbs up
I got a system with solar panels and battery storage a couple of years ago and I still have some carry forward for the 2024 tax year. However, I have a huge tax liability this year, and thus I would like to have a second system installed on the same house that I still live in. I know you already answered that you can claim the credit again, if it's a separate system, but I wonder if that would cancel out my carry forward from the original system? Or will it just add up. Also, if I get a second power storage system, will I be able to get the rebate again for those too? Or are battery storage systems handled differently? Thank you!
Would I qualify for the federal tax credit if I pay a 3rd party (Plastiq) with a credit card and then Plastiq issued a check on my behalf to the solar company?
Note I am the owner of the panels.
Have you taken advantage of this credit yet? It's been around for years!
I installed panels back in 2019 and received the tax credit. We financed the panels over 5 years and didn't do a PPA or lease agreement with the installation company. On our taxes it was just an additional 5695 form we had to fill out and submit for that year. It was relatively easy all in all. However, I knew my tax situation well and understood that I was getting back the taxes I had already paid for that year. The difference between a deduction and a credit can trip a lot of people up!
Thank you so much for the information man
Does all the solar equipment have to be brand new?
@johnfitbyfaithnet no, but good luck finding an installer willing to install used equipment. I never pull permits and just DIY everything so i wouldnt be afraid of used equipment for the right price, but I'm an electrical engineer and know what I'm doing.
@johnfitbyfaithnet
Here is a brief expansion on your inquiry.
In some cases, used equipment can qualify, but the following requirements must be met:
First-time installation: The solar equipment must be installed in your home or business for the first time. Even if the equipment was previously used elsewhere, it must not have been claimed for the ITC before.
Operational condition: The equipment must be in good working order and capable of generating electricity as intended.
As always, do your diligent research, however consult with a knowledgeable tax person
I have a question and hope someone can help me with this. I understand that in order for the cost of the battery to be eligible for the tax credit, the battery needs to have a storing capacity of 3000 or more wh. so, could I buy like 2 Ecoflow delta max that has 2000 wh each but 2 would put me at 4000. would that still work, or would it has to be from one unit?
@@waitam5014 I don't believe any ecoflow is eligible
What type of documentation i need to have to probe that my system is up and running if i installed myself? thanks
1. You must prove the system is operational, I can think of either providing copies of your utility statement to show excess/import power to the grid, however some systems do have integrated production software that does a neat job of demonstrating production via graphs etc
2. System installation on your primary residence. I don't know if it will qualify for non-primary residence projects
3. Cost of equipment and any contracted labor costs ( electrician, permits etc ) . You will not be paid for your DIY labor costs.
I withdraw $20000 from my 401k account last year and invested into a solar system for my house. Will the solar tax credit offset my tax liability for my 401k withdrawal?
@user-gx8pc7qp9r OMG!!!! Why TF would you do that!!???? Lol of course you will have to pay tax penalties for the withdrawal if you are not of the proper age. Even if you are the correct age you WILL owe taxes on the gains of that $20k. You will first pay taxes on that withdrawal then subtract credits. Depending how old you are, the credits will not be enough to cover income tax and penalties
Why invest in solar panels when the sp500 out preforms solar. I just put $20k into a money market account and the monthly interest pays off the electeic bill.
Because you're paying that money either way? This literally doesn't make any sense lol
@devonthompson9922 you have alot to learn about money. The reason to invest money in anything other than solar panels is liquidity. In ten years when I move, I can take my investments with me. If I have my money in solar panels then I have to hope the next person is willing to pay money for the panels on the house. Not to mention panels are a depreciating asset unlike the stock market.
Funny you say I have a lot to learn about money but you don't understand net present value lol
@@devonthompson9922 I realize you understand less than I do, no harm done.
@@thedude5040
Panels aren’t for everyone as peoples have different situations. But a family that’s struggling to pay high electric bills don’t have 20k cash to invest and can actually take advantage of a fix solar payment instead of the forever increasing electric bill. While also depending on the market they live in add value to their home.
Thanks dude
@@Runfastgo you're welcome
Our bill just jumped huge in NorCal. I have no choice for solar.
Why do you say that you have no choice for solar? Too much shade or do you rent?
My team has helped many homeowners with solar in NorCal.
@user-hl1gm1rw3q you can just stick $40k cash into a high yeild interest savings account and use the monthly interest to pay your electric bills
What if you get a refund on your tax return? Do you still get the dollar amount of your tax credit from solar panels?😊
You may. It depends. If your tax refund (before solar credits) is less than your total liability, you may still receive more of a refund for your solar Tax credits
I am retired and have no earned income. I have a $9000 tax credit from my solar panels. So I took a $10,000 from mine Aira and transferred into my Roth Ira. I’m showing $10,000 of extra income on my tax return.will that work in this scenario? Can I take the 8000 9000 tax credit and apply it to a Roth transfer. Not earned income.
@@NguyenCPAs I thought Ryan said you do not get a refund if you have no tax liability?
Wow. That’s cool finally I found a man in this business finally so generally I found only women
How long does the solar tax credit keep carrying forward? Forever till you have a tax liability??
yup
Got scammed and I got like $500 credit for a 40k system
How come? Did you purchase or lease or PPA?
@@bhaumikpatel9616 purchase. Company no longer in business less than six months after the install
Is it possible to share company name?
@@bhaumikpatel9616 daybreak noons answers the phone even the finance company couldn’t reach them.
@@bhaumikpatel9616 finance
Can you calim if buyong a house that has them installed?
No, only for the buyer that took on the expense of having them installed.
Do you know side hustle addict from Denver?
Can you do my tax
@kimnhan8680 you ca do it yourself for about $30 from HR block if you download their software onto a PC.
As a solar salesperson I find your opinion offensive. You could have talked about how the credits work without bashing an entire industry and sales people in general.
You must be a Millennial,
or a Centennial.. grow up and understand everyone has thier right to an option...