Nevada Solar Tax Credit

With more than 6 peak sun hours, Nevada is in the Top 3 of our solar rankings. This means that in Nevada your solar panels will definitely pay for themselves. And if you want to speed up the process, take advantage of the greatest incentive available to solar owners – Investment Tax Credit. Here is a quick article on how to claim Solar Tax Credit in Nevada.

What is the Solar Tax Credit?

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

Available until December 31, 2034, the Solar Tax Credit decreases to 26% in 2033 and further to 22% in early 2034.

How does the Nevada Solar Tax Credit work in practice?

If, for instance, a household installs a $20,000 solar panel system, they can deduct $6,000 from their income taxes, reducing the net cost to $14,000. Any remaining credit can be carried over to subsequent years, ensuring you realize the full 30% promised by this solar incentive.

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Also, note that to qualify for the ITC, you must own the solar energy system, and it must be installed in the United States. The system should be new or used for the first time.

How do I get a solar tax credit in Nevada?

The Solar Tax Credit is claimed after installing the solar system. Maintain detailed records of installation expenses, such as invoices and receipts, as evidence of qualified expenditures. Although not mandatory to submit, these documents may be required in case of an audit.

To claim the credit as a homeowner, complete IRS Form 5695 and attach it to your federal income tax return. Include residential energy credit information on Schedule 3 (Form 1040) and 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 Nevada Solar Tax Credit

The credit covers not only the cost of solar panels but also all associated equipment, shipping, and labor expenses. There is no cap on how much you can claim back.

Additionally, Nevada offers its own state-level incentives and rebates for solar installations, complementing the federal solar tax credit. For more details, explore our guide on Nevada solar incentives.

Julia Zaraeva

Author

Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.

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