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About Form 5695, Residential Energy CreditsInternal IRS

About Form 5695, Residential Energy CreditsInternal IRS

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Instructions and help about About Form 5695, Residential Energy CreditsInternal IRS

in this video I'm going to go over the solar federal tax credit what it is how to get it and what it covers at the end of the video I'll also answer some common questions the cost of solar has been dropping quickly over the years but is still unaffordable to many people unless incentives are involved with this in mind the US government originally created the solar federal tax credit also known as the ITC to help bring down the cost of going solar the solar federal tax credit is a dollar for dooll reduction in the amount of income tax you owe this means if you pay any federal income tax throughout the year you can use the solar tax credit to pay some of or all of what you pay in federal income taxes this lowers the amount you owe out of pocket and may even result in you getting a refund on your taxes the inflation reduction Act passed in 2022 extended the deadline of the ITC and set the tax credit at 30% of your solar installation costs it will remain at 30% until 2032 i

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