What's the federal tax credit on solar?

The Inflation Reduction Act tax credit is a financial incentive offered by the federal government to encourage Colorado homeowners to purchase and install solar energy systems in their homes. This tax credit is designed to help offset the upfront costs of installing a solar energy system and make it more financially feasible for Colorado homeowners to switch to clean, renewable energy.

Under the Inflation Reduction Act, Colorado homeowners who install a solar energy system in their home are eligible to receive a tax credit equal to 30% of the total cost of the system. 

How to Qualify

To qualify for the Inflation Reduction Act tax credit, Colorado homeowners must meet certain criteria. The solar energy system must be installed in the homeowner's primary residence or a second home that is not used for business purposes. The system must also meet certain performance and efficiency standards, as determined by the Department of Energy.

How to Claim the Tax Credit

To claim the Inflation Reduction Act tax credit, homeowners must file a tax return and provide documentation of the solar energy system installation, including receipts and proof of ownership. The tax credit can be claimed in the year that the system was installed or spread out over several tax years.

In addition to the Inflation Reduction Act tax credit, homeowners may also be eligible for other financial incentives, such as state and local tax credits, rebates, and grants. These incentives can vary depending on location, so homeowners should check with their state or local energy agency to see what incentives are available in their area.

Overall, the Inflation Reduction Act tax credit is a valuable opportunity for Colorado homeowners to save money on the upfront costs of installing a solar energy system and make the switch to clean, renewable energy. By taking advantage of this credit, homeowners can not only save money on their energy bills, but also make a positive impact on the environment by reducing their carbon footprint.