The ads you reference are very misleading.
There is nothing I am aware of in the Inflation Reduction Act that makes solar panel installation "free." The residential solar energy credit is worth 30% of the installed system costs through 2032. 26% in 2033. 22% in 2034 and expires after that. There are no income limits on the solar tax credit, so all individual taxpayers are eligible to claim the credit on qualifying solar energy equipment investments made to their homes within the United States.
To qualify for claiming the solar tax credit on your tax return, you’ll first need to meet some eligibility criteria:
- Your solar equipment needs to be installed between January 1, 2017, and December 31, 2034.
- The solar equipment must be located at a residence of yours within the United States.
- The solar equipment is new or being used for the first time (meets the original installation requirement for claiming the credit).
From there, you’ll need to meet one of these two requirements to claim the credit:
- Purchase the solar system with cash or through some form of financing that isn’t a lease or an agreement to pay a solar company for electricity generated by the system.
- Purchase an interest in a community solar project that is separate from your residential property, if the electricity generated is credited against, and doesn't exceed, your home’s electricity consumption.
For more information, please see: https://turbotax.intuit.com/tax-tips/going-green/federal-tax-credit-for-solar-energy/L7s9ZiB4D
Thank you,
Ruth C-L, CPA, Attorney
