Georgia Solar Tax Credit

13 Dec 2023
3 min
Beginner

Andrey GorichenskiAuthor

If you're thinking about going solar in Georgia, understanding the Solar Tax Credit is crucial. This incentive can significantly reduce your expenses! Let's explore how to claim the Solar Tax Credit in Georgia in 2024.

What is the Solar Tax Credit?

The Solar Tax Credit, also known as the Investment Tax Credit (ITC), is a US government program to encourage investments in solar panels. It allows individuals and businesses to deduct a percentage of the cost of these systems from their federal income taxes, lowering the overall tax bill for those diving into solar energy.

How does the solar tax credit work?

The ITC lets owners of solar energy systems claim a tax credit equal to a percentage of the system's cost. For instance, if you install a solar panel system, you can subtract a portion of the cost from your income taxes, reducing your net expenses. The current credit rate is effective until December 31, 2034, after which it gradually decreases. If the tax credit is more than your income taxes, the extra credit can be carried over to the next year, ensuring the full benefit of the incentive.

How do I get a solar tax credit in Georgia?

To qualify for the Solar Tax Credit in Georgia, you must own the solar energy system (not lease it) and ensure it is installed in the United States. Additionally, the system should be new or used for the first time.

To claim the credit, keep detailed records of all expenses related to the solar system installation, such as receipts and invoices for solar panels, inverters, mounting equipment, and labor costs. While you won't need to submit these records with your taxes, it's a good idea to keep them safe in case of an IRS audit.

April 15

National Tax Day

You can claim the Georgia Solar Tax Credit by completing IRS Form 5695 and attaching it to your federal income tax return. Include your residential energy credit information on Schedule 3 (Form 1040), and make sure to file your tax return by 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 Georgia Solar Tax Credit

The Solar Tax Credit in Georgia reduces the cost of a solar installation, covering not only the solar panels but also equipment, shipping, and labor expenses. The best part is that there's no limit to how much you can claim back.

Besides the federal solar tax credit, Georgia may offer its own state-level incentives and rebates for solar installations, making it even more affordable. Check out our guide on Georgia 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.