Did you know that 57% of US households paid no federal income tax for 2021?
While tax rates and rates might change, one thing never does. Taxpayers must pay federal income tax unless they’re below the filing threshold.
If you’re thinking about making changes to your home, such as solar panels, you might want to know about the solar tax credits available.
Taxes can be complicated. It isn’t easy to know if all your deductions are being fully utilized. This article will explain Oregon’s tax credits when switching to solar energy.
Introduction to Solar Tax Credits and Incentives in Oregon
In Oregon, solar energy incentives are available to homeowners and businesses installing solar PV systems. The combination of federal, state, and utility solar incentives can reduce the cost of a solar installation by over 50%.
The federal government offers a solar tax credit, also known as the Investment Tax Credit (ITC), which allows you to deduct 26% of the cost of your solar PV system from your federal taxes. The ITC is available for both residential and commercial solar PV systems.
The state of Oregon offers a few different incentives for solar PV installations. The Residential Energy Tax Credit (RETC) allows you to deduct up to $1,500 from your state taxes for installing a solar PV system. The Oregon Business Energy Tax Credit (BETC) offers a tax credit of up to $6,000 for businesses that install solar PV systems.
State of Oregon Sales Tax Exemption for Solar Energy Equipment
The Oregon Department of Revenue offers a sales tax exemption for solar energy equipment. The exemption applies to both the purchase and installation of solar energy equipment.
Solar energy equipment includes:
- Solar panels
- Solar water heater
- Solar lights
- Solar pool heaters
The exemption does not apply to batteries, chargers, or other non-solar energy equipment. The exemption applies to both residential and commercial solar energy equipment.
If you’re considering switching to solar power in Oregon, there are a few things you should know about the solar energy tax credits and incentives available to you. BRS savings estimate can help you with it.
Oregon Solar Energy Incentive Program (SEIP)
The Oregon Solar Energy Incentive Program (SEIP) is a great way to start with solar energy. The program offers a rebate of up to $5,000 for installing a solar PV system.
In addition, the SEIP provides a tax credit of up to $1,500 for the system. It is a great way to save money on energy bills and make your home more energy-efficient.
Oregon Solar Renewable Energy Credits (SREC)
The Oregon Solar Renewable Energy Credits (SREC) program provides tax rebates for homeowners and businesses that install solar PV systems. The refund amount depends on the system’s size and the customer’s tax liability.
Oregon also offers a property tax exemption for solar PV systems. Solar PV systems are also eligible for state and local incentives, including net metering, production incentives, and low-interest loans.
Maximizing Your Solar Savings
There are plenty of ways to save on your solar installation, from state and federal tax credits to utility rebates. So take advantage of all the solar energy tax credits and rebates available in Oregon and start saving today. This guide has all the information you need if you’re looking for Oregon’s solar tax credits and rebates.
Reach out to us today and let us help you start saving now.
