Nov 14, 2016
Utah is one of seven Western states in the US recognized for massive solar efforts. Southern Utah in particular gets around 6.0 to 6.5 kilowatts per day, making it a prime region for solar energy. In recent years, residents using solar panels in St. George were generating so much energy from their panels that the local government had to start charging them for the excess energy. This shouldn’t discourage you from using solar panels in your St. George home, though. There are huge tax credits available from the state of Utah and the federal government that will save you green by going green.
Because Utah’s such a hotspot for sunlight, residents throughout the state can benefit with a tax credit for solar energy systems. If you’re a Utah resident who owns solar panels, you can claim a non-refundable tax credit for the cost of installing and operating a residential energy system under $2,000. The Investment Tax Credit (ITC) works for 35% of the eligible system cost or up to $2,000, you get money for whichever is the lower number.
For example, if your tax liability is $3,500 and you get this tax credit for $2,000, your liability will be $1,500 for the state of Utah. On the other hand, a tax liability of $1,200 and you receive a credit of $2,000, then tax liability becomes $0 and the remaining $800 rolls over to the next year. To get this credit, all you need is a solar energy system and the TC-40E tax form. You can claim the credit through the TC-40A form.
The US Government offers a similar tax credit for anyone who owns a solar energy system for their home or business. If you don’t have enough tax liability right now, you can roll over remaining credits for the years to come.
From 2016 to 2019, you can deduct 30% of the installation and operating costs from your federal taxes. This number will decrease after 2020 until it hits 10% in 2022. However, the federal credit can be tacked onto your state credit. Talk to an accountant or other experts for more information. For the coming years, it’ll pay to go green in St. George.