Recently a number of my clients have asked me the same questions about solar energy tax credit you can receive as a result of installing certain qualifying equipment. I wanted to give you a quick primer in case any of you are interested.

• Qualifying equipment includes solar-powered units that generate electricity or heat water.
• Credit equals to 30% of your total qualifying equipment cost.
• Credit is available through Dec. 31, 2019. After that, you can still apply, but % is lower.
• As a credit, it is applied directly against your tax due. It is not a deduction from your income.
• Other than the cost of the system, there is no limit to the dollar amount of the credit.
• Credit is non-refundable.
• Credit is available in MA. It is equal to 15% of the total cost or $1,000, whichever is higher.
• If credit is not used 100% in the current year, it is possible to carry forward into future years.
• You must fill out a separate form on your tax return (IRS Form 5695) to calculate your credit.