Overview

The Residential Clean Energy Credit is a federal tax incentive designed to make solar energy more affordable for homeowners. Eligible taxpayers can claim a percentage of the cost of their solar energy system as a credit on their federal income taxes. This credit not only reduces your tax burden but also accelerates your return on investment in clean, renewable energy.

Current Incentive:

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• 30% Credit – Available for solar installations completed between 2022 and 2032.

• Phase-Out Schedule:

  • 30%: Installations completed through 2032

  • 26%: Installations completed in 2033

  • 22%: Installations completed in 2034

• The credit expires in 2035 unless extended by Congress.

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Eligibility Requirements

To qualify for the Residential Clean Energy Credit:

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• The solar energy system must be installed on a primary or secondary residence located in the United States.

• The system must use new, not previously used solar equipment.

• Systems must be owned by the taxpayer (leases or PPAs do not qualify).

• This applies to solar panels, solar roofing tiles, Tesla Powerwall battery storage (when charged with solar), and installation costs.

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How to Apply

1. Install a Solar Energy System – Complete your solar project with Gulf Coast Solar, ensuring all equipment is new and eligible for the credit.

2. Collect Documentation – Save all receipts and documentation related to the purchase and installation of your solar energy system.

3. File IRS Form 5695 – Claim the Residential Clean Energy Credit when filing your federal tax return.

4. Consult a Tax Professional – While Gulf Coast Solar provides the information you need, we recommend consulting a professional for personalized guidance.

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Why Act Now?

• 30% Maximum Credit Available Now – The credit will decrease after 2032.

• Energy Cost Savings – Reduce your monthly electricity bills while increasing your home's value.

• Sustainability Impact – Reduce your carbon footprint and contribute to a cleaner environment.

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Commercial Incentives: Investment Tax Credit (ITC)

While the Residential Clean Energy Credit applies to homeowners, businesses can benefit from the Solar Investment Tax Credit (ITC).

Key Details:

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• 30% Tax Credit – Available for commercial solar installations completed through 2032.

• Bonus Depreciation – Businesses can depreciate the cost of solar equipment under the Modified Accelerated Cost Recovery System (MACRS).

• Eligibility: Applies to solar panels, inverters, racking, batteries, and installation costs.

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Next Steps

• Schedule a Free Consultation – Let us help you assess your eligibility and potential savings.

• Install with Confidence – Gulf Coast Solar will handle the design, permitting, and installation process.

• Start Saving – Enjoy lower energy bills and maximize your savings with the Residential Clean Energy Credit.

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