Alaska Solar Tax Credit

Investment Tax Credit is available even to those who want to go solar in Alaska. Make sure to use it: this incentive brings down the cost of PV installation by 30%. In this article, we’ll talk about claiming a Solar Tax Credit in Alaska.

What is the Solar Tax Credit?

The Solar Investment Tax Credit (ITC) allows businesses and homeowners in Alaska to get a tax credit amounting to 30% of the solar panel system's cost. Unlike a rebate, the ITC directly lowers the income tax owed.

This Solar Tax Credit is available for those installing solar panels before December 31, 2034, with a decrease to 26% in 2033 and a further reduction to 22% at the beginning of 2034.

How does the Solar Tax Credit work in practice?

In a nutshell, the Solar Tax Credit in Alaska works the same way as it would in any other state. If you install a $20,000 solar panel system, you can then deduct $6,000 from your income taxes. In essence, the net cost of a system drops down to $14,000. If the credit is bigger than the amount of taxes that you owe, you can carry the remains over the next year. 

How do I get a solar tax credit in Alaska?

The procedure for claiming Solar Tax Credit in Alaska is the same as in every state of the US. The incentive is claimed after your solar system is installed. Keep the bills, receipts, and papers related to solar panels installation and purchase. You don't have to send these records in, but you might need them in case of an audit.

Read also

Tax Day has never been so shiny: Federal Solar Tax Credit in 2024

To get the Solar Tax Credit, you need to own the solar system, not rent it. The solar panels must be either brand new or used for the first time. If you're putting solar panels on a boat or an RV, write it down as your second home.

If you're a homeowner and want to claim the Solar Tax Credit, fill out a form called IRS Form 5695. Add it to your federal tax return and make sure to add your home energy credit info to Schedule 3 (Form 1040). Send in your tax return before the deadline.

Need help? Follow our guide!

We cover filling out the forms for claiming ITC step by step

Step-by-step guide

Benefits of the Alaska Solar Tax Credit

The Alaska Solar Tax Credit doesn't just cut the cost of solar panels; it also includes all the related equipment, shipping, and labor expenses. There's no limit to how much you can claim. Besides the national solar tax credit, Alaska might have its own state-level rewards and discounts for solar setups, making it even easier to start using solar energy. Check our guide on Alaska solar incentives for more details.

Andrey Gorichenski

Senior Editor

Andrey had been a news editor and freelance writer for a number of medias before joining A1SolarStore team. Climate change and its impact on people's lives has always been among his interests and it partially explains his degree in Philosophy and Ethics.

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