Solar Panels Colorado Tax Credit

30 of the costs of equipment permits and installation can be claimed back via your federal tax return.

Solar panels colorado tax credit.

Colorado has long been a leading state in the national initiative for solar power and renewable energy. The credit is applied to the following tax year so if you spend 10 000 on a new solar system you ll be able to take a. The federal solar tax credit itc don t forget about your federal solar incentives. Colorado is home to more than 454 solar companies employing about 6 000 people throughout the state.

The federal solar tax credit gives you a dollar for dollar reduction against your federal income tax. The average cost for an installed residential solar system in colorado is currently 10 834 after claiming the 26 federal solar tax credit. Subtract 5 250 30 of 17 500 for a new price of 12 250. The december 18 bill contained a 5 year solar tax credit extension which makes solar energy more affordable for all americans.

Lots of sunlight state rebates property and sales tax exemptions plus the federal government 30 tax credit for the whole installed. Colorado renewable and solar energy incentives. The federal solar energy tax credit is a tax credit that s available if you decide to install a solar system. After the tax credit we subtract your first year s energy savings which we estimate to be about 889.

According to the solar energy industries association. Colorado energy tax credit solar rebates and incentives. Homeowners solar companies and industry advocates alike were given a big christmas gift in 2015 when congress approved the 2016 federal spending bill and extended the solar panel tax credit. More than 510 million in colorado solar investments were made in 2016.

Since the feds calculate their incentive based on actual out of pocket costs the lack of rebates means a bigger federal solar tax credit. Colorado ranked 11th in the nation for installed solar capacity with 925 8 mw of solar energy installed as of 2016. Starting in 2020 the value of the tax credit will step down to 26 and then again to 22 in 2021. This is 2 44 per watt.

The 30 tax credit applies as long as the home solar system is installed by december 31 2019. Legislators on capitol hill recently approved an extension of the solar investment tax credit itc which is one of the most significant pv subsidies out there.