Wyoming Solar Tax Credit

One of the most significant encouragements for solar system owners is the Investment Tax Credit (ITC). Wondering why? Because it allows you to cut your expenses by a third! Curious about how to claim this Solar Tax Credit in Wyoming? Here’s a short guide.

What exactly is the Solar Tax Credit?

With the Solar Investment Tax Credit (ITC), businesses and homeowners can receive a tax credit amounting to 30% of the solar panel system’s cost. It’s essential to note that the ITC is not a rebate; rather, it directly reduces your income tax.

This Solar Tax Credit can be claimed by anyone installing solar panels before December 31, 2034. However, it diminishes to 26% in 2033 and further reduces to 22% at the beginning of 2034.

How does the Wyoming Solar Tax Credit function in practical terms?

For instance, if a household invests in a $15,000 solar panel system, they can deduct $5,000 from their income taxes and lower the net cost of the PV system to $10,000. Any remaining credit amount can be carried over to subsequent years, ensuring you virtually receive the promised 30% incentive.

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To receive the Solar Credit, you must own your solar energy system — leased systems are not qualified. The solar PV system must be new and installed in the United States. If claiming for a PV installation on a boat or an RV, consider it as your second home.

How to get a solar tax credit in Wyoming?

The Solar Tax Credit is claimed after the installation of the solar system. Keep meticulous records of expenses related to the installation, including invoices, receipts, and other documentation demonstrating the expenses. While you won’t need to submit them, they may be necessary in case of an audit.

To claim the Solar Tax Credit as a homeowner, complete IRS Form 5695 and attach it to your federal income tax return. Include your 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

Advantages of the Wyoming Solar Tax Credit

The cost reduction by the Wyoming Solar Tax Credit encompasses not just the solar panels but also all equipment, shipping, and labor expenses. Importantly, there’s no cap on how much you can claim back.

Beyond the federal solar tax credit, Wyoming offers state-level incentives and rebates for solar installations, further reducing the upfront costs. Explore more in our guide on Wyoming 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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