Kansas Solar Tax Credit

Explore the simplicity of transitioning to solar in Kansas with the assistance of the Solar Tax Credit. Interested in the procedure? Here's a concise guide on securing the Solar Tax Credit in Kansas.

What is the Solar Tax Credit?

The Solar Investment Tax Credit (ITC) empowers businesses and homeowners to receive a tax credit equal to 30% of the total cost of a solar panel system. Unlike a rebate, this credit directly reduces the income tax obligation.

Thanks to its popularity and substantial contribution to renewable energy development, the ITC has been extended multiple times since its enactment in 2006. Currently, the Solar Tax Credit applies to those installing solar panels by December 31, 2034, with the credit percentage gradually decreasing to 26% in 2033 and further to 22% at the beginning of 2034.

How does the Solar Tax Credit work?

The tax credit directly reduces the amount of income tax owed to the federal government. For example, if the cost of a solar system is $10,000, a 30% ITC would yield a tax credit of $3,000. This allows subtracting $3,000 from the total income tax liability. If the tax credit exceeds the tax liability for the year, any surplus credit can often be carried over to the next year, ensuring the full benefit.

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To qualify for the Solar Tax Credit, ownership of the solar energy system is necessary. This means that you have to purchase a system and not lease it. The system must be new or used for the first time (you can’t claim ITC for the same system twice). Additionally, the installation must take place in the United States.

How do I get a solar tax credit in Kansas?

To claim the Solar Tax Credit, follow these steps after installing your solar system. Maintain meticulous records of installation expenses. Complete IRS Form 5695 and include it with your federal income tax return. Add your residential energy credit details to Schedule 3 (Form 1040). Ensure you file your tax return by the relevant 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 Solar Tax Credit in Kansas

The Solar Tax Credit significantly reduces the cost of a solar installation, covering not only solar panels but also all equipment, shipping, and labor expenses. There's no cap on how much you can claim.

Beyond the federal solar tax credit, Kansas offers state-level incentives and rebates for solar installations, further easing the initial costs of establishing a solar energy system. Explore more in our guide on Kansas 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.

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