Solar Savings: Tax Credits and Solar

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It used to be that solar power took a back seat in the renewable energy world. Now though, solar power is a hot topic for residential home owners and commercial businesses alike. That shouldn’t come as too much of a surprise though when you factor in just how beneficial the use of solar power is for the environment compared to traditional fossil fuels. Moreover, in the long run, using solar power can lead to substantial savings financially, making the idea of installing a few panels on the roof of your home a much more attractive option.

You can kiss the utility companies goodbye with the proper installation of an adequate solar power system as most of the energy needed to run your home may be produced entirely from that system. Not only can this potentially eliminate your monthly utility bill, but it could lead to the utility company actually paying you; you see, any excess electricity produced by your solar setup can literally be sold to the utility company.

The only downside to installing a solar setup in a home or business is the initial cost upfront. In doing a bit of research, you will find that the necessary equipment needed to harness solar power is quite pricey. In fact, the upfront cost alone is enough to deter some home- and business-owners completely, even though the purchase will pay for itself in the long run. Luckily though, thanks to programs enacted by local, state, and federal governments, there are numerous tax credits available to help curb the expense.

When tax season is in full swing, you will find that these solar tax credits are much more optimal compared to the standard tax deduction. To some, credits and deductions are the exact same thing but when you get right down to it, they are completely different. A deduction will only knock a certain percent of the total expense you paid. For instance, if you were to receive a ten percent deduction, only one out of every ten dollars spent could be written off. A credit on the other hand, will allow you to write off a dollar for every dollar spent. There are oftentimes caps placed on credits, however, that will only let you write off an amount up to a certain point. These stipulations generally change with each year, so it is best that you do your own research beforehand so you can ensure you are fully aware of what you are getting into.

When all is said and done, if you’re looking for a good investment, then you cannot go wrong with solar power. The sun isn’t going anywhere any time soon, and our grip on solar technology is improving day by day. Not to mention, with all of the rebates, credits and other tax benefits available, you would be a fool not to take advantage. For the latest information on solar energy and what is currently available as far as taxes are concerned, check out the numerous state and federal government websites as they are constantly being updated. Credits vary by state, so if you want to maximize your benefit at tax time, it is best you check out what is offered in your location specifically.

This post was written by Jackson Bennett, a simple man who is always doing his part to help the world in which he lives. He doesn’t believe you need to blow your bank account on a fancy new hybrid car to be a key player. Instead, Jackson thinks it is the little things that truly matter in the end.

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