Wisconsin Solar Tax Credit explained

The best incentive for those going solar is the Investment Tax Credit (ITC). Do you know why? Because it allows you to take a third of your expenses back! Interested in how to claim this Solar Tax Credit in Wisconsin? Here’s our brief guide.

What is this Solar Tax Credit?

The Solar Investment Tax Credit (ITC) empowers businesses and homeowners to claim a 30% tax credit of the solar system’s cost. Note that the ITC is not a rebate; instead, it directly reduces your owed income tax.

This Solar Tax Credit is available to anyone installing solar panels before December 31, 2034. However, it reduces to 26% in 2033 and further decreases to 22% at the beginning of 2034.

How does the Wisconsin Solar Tax Credit work in practical terms?

For example, if you invest $20,000 in your solar panel system, you can subtract $6,000 from your income taxes, lowering the net cost of your PV system to $14,000. Any remaining credit can be carried over to subsequent years, ensuring you receive all the 30% incentive.

To qualify for the ITC, you must own this solar system — leased systems do not qualify. The solar energy system must be new or used for the first time and installed in the United States. If you want to claim the claim for a PV installation on your boat or an RV, write it down as your second home.

How can I access the solar tax credit in Wisconsin?

The Solar Tax Credit is claimed after installing the PV system. Keep detailed information, concerning the installation, including invoices, receipts, and other documents. You don’t have to submit them, but may need them in case of an audit.

April 15

most common National Tax Day date

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

Advantages of the Wisconsin Solar Tax Credit

The cost reduction facilitated by the Wisconsin Solar Tax Credit covers not only the solar panels but also all equipment, shipping, and labor expenses, and has no cap on how much you can get back.

In addition to the federal solar tax credit, Wisconsin provides state-level incentives and rebates for solar installations, further reducing the upfront costs. Learn more in our guide on Wisconsin solar incentives.

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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