Considering solar panels for your home? You’ll be pleased to know there are tax benefits and incentives, both at the federal and state level, to help make this eco-friendly switch more affordable.
At the federal level, the significant incentive is the Federal Solar Tax Credit, or Investment Tax Credit (ITC). This lets you deduct some of your solar system costs from your federal taxes. For systems installed in 2023, you can expect to benefit from a tax credit of 22% of the cost.
If your home is in Arizona, there’s more good news. The state provides additional benefits through the Arizona Solar Energy Credit, which lets you claim a credit of 25% of the cost of your solar devices on your state taxes, capped at a $1,000 credit. If you’re an Arizona Public Service customer, you can save through their rebate program.
You’re not left out of the solar savings for New Mexico residents. Your state offers the Solar Market Development Tax Credit, which could mean claiming up to 10% of your solar system costs on your New Mexico state taxes, with a limit of $6,000.
So you see, going solar contributes to a cleaner environment and’s financially smart too! Always check the details of these incentive programs or consult with a solar installation expert to understand the best way to maximize these benefits.