{"id":5991,"date":"2022-10-19T11:11:00","date_gmt":"2022-10-19T11:11:00","guid":{"rendered":"https:\/\/www.portal.solar.com\/learn\/go-solar-now-to-claim-the-solar-investment-tax-credit-in-2017\/"},"modified":"2022-11-10T22:15:41","modified_gmt":"2022-11-10T22:15:41","slug":"go-solar-now-to-claim-the-solar-investment-tax-credit-in-2017","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/go-solar-now-to-claim-the-solar-investment-tax-credit-in-2017\/","title":{"rendered":"Go Solar Now to Claim the Solar Investment Tax Credit in 2017"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">There\u2019s no doubt that going solar is an incredible investment to make, and it\u2019s never been easier than it is today. On top of the fact that it helps reduce your energy bill and helps the planet, going solar<\/span><a href=\"http:\/\/newscenter.lbl.gov\/2016\/08\/24\/median-installed-price-solar-united-states-fell-5-12-2015\/\"><span style=\"font-weight: 400;\"> is getting cheaper<\/span><\/a><span style=\"font-weight: 400;\"> and more accessible with each passing year. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even with that, many people are taking their time when deciding to go solar. The downside to this is paying a whole lot more for electricity than they need to.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As you\u2019ve probably heard, In addition to the all-time low cost of going solar, <\/span><strong>you can do a tax write-off for 30% of your overall purchase.<\/strong><span style=\"font-weight: 400;\"> The genius behind this is called the<\/span><a href=\"https:\/\/www.solar.com\/learn\/federal-solar-tax-credit\/\"> <span style=\"font-weight: 400;\">Solar Investment Tax Credit<\/span><\/a><span style=\"font-weight: 400;\">, also known as the &#8220;the ITC,&#8221; and it\u2019s saved people thousands of dollars.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The solar investment tax credit dates all the way back 2005, stemming from the<\/span><a href=\"https:\/\/www.epa.gov\/laws-regulations\/summary-energy-policy-act\"> <span style=\"font-weight: 400;\">Energy Policy Act of 2005<\/span><\/a><span style=\"font-weight: 400;\">. During this time, the ITC was born. The investment tax credit was ultimately meant to be an incentive for people to go solar, as the United States knew the value and the benefits of it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although the ITC was designed to expire in 2007, it\u2019s been extended several times, not expiring until 2021. No one knows the future of the ITC for sure, but as long as it is intact, people may as well get the benefits from it! There are just a few things to keep in mind. <\/span><\/p>\n<p><strong>Most importantly, there are some eligibility requirements needed to write off a solar system during the 2017 tax season.<\/strong><\/p>\n<p>Check this video for more details on the federal solar investment tax credit.<\/p>\n<p><iframe loading=\"lazy\" style=\"float: none; margin-left: auto; margin-right: auto; display: block;\" src=\"\/\/www.youtube.com\/embed\/bcLNIv26Ot8?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"><\/iframe><\/p>\n<h2>You Must Own Your Solar Panel System<\/h2>\n<p><span style=\"font-weight: 400;\">There are many different ways to finance adding solar panels to your house. You can pay upfront, take a loan, lease it, or use a <\/span><a href=\"https:\/\/www.solar.com\/learn\/solar-leases-solar-loans-solar-ppas-cash-purchases-comparisons\/\"><span style=\"font-weight: 400;\">PPA<\/span><\/a><span style=\"font-weight: 400;\">. In order to qualify to write 30% off on your taxes, you need to own your solar system. If you purchased it upfront with your own cash or will be paying it off with a loan, you own it. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you signed a lease or a PPA, you don\u2019t own it, and you won\u2019t be eligible for the 30%.<\/span><\/p>\n<h2>The System Should be Fully Operational by 12\/31<\/h2>\n<p><span style=\"font-weight: 400;\">If you wait until January 2018 or later to have your solar system paid for and installed, even if you signed a solar agreement in 2017, you may need to wait 15 months, until 2018\u2019s tax season, to write it off. To be totally safe, your solar system should receive utility <\/span><a href=\"https:\/\/solarbook.pickmysolar.com\/solar-installation\/solar-installations-process\/\"><span style=\"font-weight: 400;\">Permission To Operate<\/span><\/a><span style=\"font-weight: 400;\"> (PTO) before the end of the year. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">There is some \u201cwiggle room,\u201d: in our experience, we\u2019ve had customers receive the tax credit in the upcoming tax season if it\u2019s mostly paid off by the end of the year. In the case of a loan, this would mean making sure the loan providers pay for the system by December 31st.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Besides the obvious downside of needing to wait an extra year to get the benefit of the solar tax, more problems may come if you do wait until January to get things moving. For those who take out a loan, this proves problematic, as some loan providers expect you to pay 30% back within 12 months and then <\/span><a href=\"http:\/\/www.mortgage101.com\/article\/mortgage-re-amortization-explained\"><span style=\"font-weight: 400;\">re-amortize<\/span><\/a><span style=\"font-weight: 400;\"> the loan.<\/span><\/span><\/p>\n<p><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> This will vary depending on the loan provider, so be sure to check with them about your specific project. Some of them don\u2019t expect the 30% back until 18 months or even 2 years.<\/span><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><iframe loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto;\" src=\"\/\/player.vimeo.com\/video\/216562829?title=0&amp;byline=0&amp;portrait=0&amp;color=8dc7dc\" width=\"640\" height=\"360\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/span><\/span><\/p>\n<p style=\"text-align: center;\">Here&#8217;s a quick summary of the solar installation process!<\/p>\n<p>&nbsp;<\/p>\n<h2>You\u2019re Eligible. Now What?<\/h2>\n<p><span style=\"font-weight: 400;\">If you plan on getting a solar system installed in your home, there is no time like the present. You might be wondering, \u201cOkay, I am eligible but how do I actually go through the process to write off 30% on my taxes?\u201d. Well, it just takes two forms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s actually very simple. You need to fill out the<\/span><a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f5695.pdf\"> <span style=\"font-weight: 400;\">IRS form 5695<\/span><\/a><span style=\"font-weight: 400;\">, calculate your \u201cResidential Energy Credits\u201d, and document the result on<\/span><a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f1040.pdf\"> <span style=\"font-weight: 400;\">IRS form 1040<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Note, we aren\u2019t accountants so we\u2019ll leave the details to how to best fill out these forms to the experts, but know that it isn\u2019t rocket science. Just include those forms in the conversation when you\u2019re doing all your other tax forms as well.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Check this video to know how to claim your federal tax credit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><iframe loading=\"lazy\" style=\"float: none; margin-left: auto; margin-right: auto; display: block;\" src=\"\/\/www.youtube.com\/embed\/IMRjeLg1XCQ?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"><\/iframe><\/span><\/p>\n<p><span style=\"font-weight: 400;\">There really is no time like now to go solar. The United States and the entire world has been going solar at an increasing pace and finding a provider has never been easier before. <\/span><\/p>\n<p>See how much you can save with solar,\u00a0<a class=\"c-link\" tabindex=\"-1\" href=\"https:\/\/www.solar.com\/dashboard\" target=\"_blank\" rel=\"noopener noreferrer\" data-stringify-link=\"https:\/\/www.solar.com\/dashboard\" data-sk=\"tooltip_parent\" data-remove-tab-index=\"true\">here!<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There\u2019s no doubt that going solar is an incredible investment to make, and it\u2019s never been easier than it is today. On top of the fact that it helps reduce&#8230;<\/p>\n","protected":false},"author":51,"featured_media":6165,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[89],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Go Solar Now to Claim the Solar Investment Tax Credit in 2017 | Solar.com<\/title>\n<meta name=\"description\" content=\"When filing for the solar investment tax credit, there are some eligibility requirements needed to write off a solar system during the 2017 tax season.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solar.com\/learn\/go-solar-now-to-claim-the-solar-investment-tax-credit-in-2017\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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