Solar Tax Credit
The state of North Carolina has extended its energy policy act that’s been active since 2005 to allow people who install solar powered systems to claim tax breaks in the year that they have the system installed. You’re going to be able to claim up to 30% of the value of your entire system and balance that against your tax total. This means that for the average cost of a solar powered system which is about 35,000 you could claim a 10,500 credit. For a lot of people that’s going to represent a major tax break.
How To Know If You Are Eligible To Receive The Tax Credit
The requirements are actually pretty simple: it has to be a system that was installed within the year. If there’s one thing that you want to keep an eye on it would be the add-ons that you may have had installed alongside your solar power system. Obviously things like solar panels are going to be a part of the tax credit that you can get for installing the system.
What Is Not Eligible
What a lot of people have been known to do is to go ahead and install an outdoor lighting system. It makes sense if you’re going to be lowering the cost of your electric bill you’re going to be able to add a couple more gadgets that use up energy. The problem is, authorities are looking to crack down on that. Just to make sure that people are not abusing the benefits that the local code provides. When you are getting a budget for a new solar power system you may want to take this tax break into account.
There’s No Cap On The Cost Of The System
Without a doubt one of the main things that you’ll want to keep in mind when you’re installing a whole new solar powered system. The tax credit does not come with a limit on the cost of the system itself. As we’ve mentioned though there are certain elements that can’t be added to the total cost in an attempt to get a bigger tax break. What you could be looking into though is installing may be a bit more solar panels than you might need. Those could be included in the cost of the system, and they could help you produce more energy down the road.
Make Sure To File Within The Year That The System Was Installed
The key element to all of this is to make sure that you file for the tax credit within the year that you had the system installed. That’s the biggest thing that you can’t forget to be eligible for the tax credit. If you’re thinking about installing a solar powered system on your property it ironically may be something that you want to run by your account. To ensure that you’re not missing out on any of the benefits that the local code in Charlotte is currently offering. For now this tax credit will be available until 2025.