Form 5695 is the form you’ll use when filing federal taxes to figure and take your residential energy credits.
Here are links to the current form and instructions. If you have further questions about filling out your form, please direct them to your tax preparer or accountant. Here at Iconic Energy, we are not in a position to give tax advice.
Federal Solar Tax Credits
The solar Investment Tax Credit (ITC) is a federal tax credit for solar panel systems installed on residential and commercial properties.
For new solar installations in 2021, the ITC is currently a 26% federal tax credit. Congress passed a multi-year extension of the credit in Dec of 2020. This prevented the tax credit from dropping down to 22% in 2021.
Federal Solar Tax Credit Information Links:
The current solar ITC schedule is shown on the SEIA (Solar Energy Industries Association) website.
- For more details on how the credits work, see this document about tax credits for solar from the U.S. Department of Energy. Please Note: This document has not been updated to reflect the ITC extension just approved by Congress at the end of 2020.