It is wise to review how the credit will work for you ... good news what you cannot use can be carried forward.
How do I claim the Federal Tax Credit?
So let’s get to the good stuff. What do you need to do to actually get your hands on this money?
Our first bit of advice is to keep all your receipts from the start. The more you spend on your project, the larger your credit – make sure to keep track of everything!
Here are some of the expenses that you are allowed to claim:
- Solar equipment
- Freight shipping costs
- Solar consulting fees
- Professional installer fees
- Electrician fees
- Engineer fees
- Tools bought or rented
- Wiring, screws, bolts, nails, etc.
- Equipment purchased or rented (scaffolding or a man-lift, for example)
- Permitting fees
- Permitting service costs
Costs will vary depending on the approach you take to installation. Hiring a contractor is an expense that can be claimed.
You can also choose to install the system yourself. Although you can’t claim your own labor as an expense for the credit, you still come out far ahead on overall project costs.
Also, here’s the federal solar tax credit’s value over the next five years:
- 2018: 30%
- 2019: 30%
- 2020: 26%
- 2021: 22%
- 2022: 0% (10% for commercial)
Here are some examples of what you can claim:
- Solar Products
- Permitting Services and Fees
- Installation Costs
- Engineer Fees
- Electrician Fees
- Shipping Costs
- Solar Consulting Fees
- Tools Purchased or Rented
- General Equipment Costs (Fork-list, Safety Harnesses, etc.)
- Any Miscellaneous Costs and Fees (For Solar)
This guide covers it in-depth
Utah's credit info : https://energy.utah.gov/tax-credits-financing/solar-tax-credits/
