The federal residential clean energy credit can help maximize your solar savings by allowing you to claim a portion of your total solar installation costs on your federal taxes. It’s not a tax refund. Instead, it reduces the amount of money you owe in taxes as a credit.

In general, you will be able to claim the tax credit on your federal tax return for the year you install a solar system. To apply, download and fill out IRS Form 5695 for residential energy credits.

Homeowners are encouraged to explore tax credits and incentives offered by the states or localities in which their homes are located. Eligibility, requirements, and benefits associated with state or local tax credits and incentives are often different from those of the federal solar tax credits.

As always, we encourage Timberline Solar™ customers to consult their tax advisors on all available solar tax incentives.