Florida Solar Tax Credit

Florida is one the best places to go solar in the whole country. There is lots of sunshine, the energy is expensive and solar programs and incentives make switch easy. The best of them is of course the Federal Solar Tax Credit — learn how to claim it in Florida!

What is Solar Tax Credit?

The Investment Tax Credit or Solar Tax Credit is a tax incentive provided by the US government to encourage businesses and individuals to invest in solar panel systems. This credit allows taxpayers to deduct a percentage of the cost of qualifying investments from their federal income taxes. In essence, it helps to reduce the tax liability of those who invest in solar energy.

How does the Solar Tax Credit work in Florida?

The ITC lets the owners of solar energy systems to claim a tax credit equal to 30% of its cost. If a homeowner installs a $10,000 PV system, he can subtract $3,000 from their income taxes. The net cost of a solar system goes down to $7,000 then. The credit will remain at 30% level until December 31, 2034, then drop down to 26% in 2033 and to 22% in 2034.

Read also

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

If credit is bigger than your income taxes, the remain carry over to the next year. This way you'll get back the 30% that this solar incentive promises for certain.

How do I get a solar tax credit in Florida?

To qualify for the Solar Tax Credit, you need to own the solar energy system, not lease it. The system should be installed in the United States and should either be new or used for the first time.

You claim the Solar Tax Credit when a solar system is already installed. Keep detailed records of all the expenses related to the installation, like receipts and invoices for solar panels, inverters, mounting equipment, and labor costs. You won't have to send these records in with your taxes, but it's a good idea to keep them safe in case of an audit.

To claim the Solar Tax Credit in Florida as a homeowner, you'll need to complete IRS Form 5695 and attach it to your federal income tax return. Make sure to include your residential energy credit information on Schedule 3 (Form 1040). Be sure to file your tax return by the applicable 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 Florida Solar Tax Credit

The Florida Solar Tax Credit helps lower the cost of a solar installation by a third. This credit doesn't just cover the solar panels but also includes all the equipment, shipping, and labor expenses. The good news is there's no limit to how much you can claim back.

Besides the federal solar tax credit, Florida offers its own state-level incentives and rebates for solar installations. These additional programs can make installing a solar energy system even more affordable. You can find more details in our guide on Florida solar incentives.

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.

More articles from this author