Wyoming Solar Energy Tax Credit Options: Everything You Need to Know
If you live in Wyoming and want to switch to solar energy, you're in luck! The state offers a few options to make the transition to renewable energy more affordable. While there is no "official" Wyoming solar energy tax credit like in other states, incentives and rebates can help you save money while also saving the planet.
One such option is a federal rebate, which is part of the many Residential Clean Energy Credits offered by the United States government. Since the introduction of solar energy tax credits, Consumer Reports claims that there's been an average reduction in the price of solar panel installation by over 50% compared to ten years ago.
But how do these tax credits work? What are the requirements? And how much can you actually save?
This comprehensive guide will take you through everything you need to access a solar energy tax credit as a Wyoming homeowner, including how to claim them, what types of solar systems are eligible, and more. Get ready to learn about your options and take the first step towards a more sustainable future.
What is a Solar Energy Tax Credit?
A solar energy tax credit is a financial incentive provided by federal and state governments to encourage the installation of solar panels on homes. The federal solar investment tax credit (sometimes simply referred to as an ITC) offers a credit equal to a percentage of the total cost of a solar system.
The ITC was first introduced in 2006 and has helped fuel the growth of the solar industry in the United States. But, it's set to decrease starting in 2033 and eventually expires for homeowners in 2035 (unless Congress renews it), so now is a great time to take advantage of this incentive.
How much can you save at a federal level?
For solar energy systems installed in 2020 and 2021, this tax credit is 26% of the total cost of installation. For systems installed between 2022 and 2023, that tax credit goes up to a whopping 30%.
The best part? There is no maximum amount you can claim! Moreover, individual states offer other state-level tax credits you can claim to help offset the costs of switching to solar energy, too.
A solar energy tax credit reduces the upfront costs of solar installation and helps homeowners save money on their electricity bills in the long run. Solar panels generate their own power, so homeowners can reduce their reliance on the grid and potentially even sell excess energy back to the utility company.
Does Wyoming Have a Solar Energy Tax Credit?
Unfortunately, Wyoming's state legislature hasn't yet implemented any tax credits specifically for solar power.
However, Wyoming does have a residential rebate program that offers up to a 50% rebate for the cost of solar panel installation. You can claim this rebate for a maximum of $3,000. Plus, homeowners who install solar panels won't have to pay any sales tax on the equipment.
While Wyoming's incentives may not be as strong as other states, they're still worth considering if you want to save money and reduce your environmental impact.
Here are a few other ways to get discounts on switching to solar in Wyoming.
Federal Grants
If you're a homeowner in Wyoming considering a switch to solar energy, federal grants are available to help make your transition easier and more affordable.
The American Investment and Recovery Act of 2009, for example, opened up more opportunities for incentives in alternative energy and introduced several grant programs. Or, the Renewable Energy Grant gives up to 30% of the property basis for new construction in commercial, industrial, or agricultural facilities utilizing solar power.
If this doesn't apply to you, we suggest Googling other federal grants you might be able to qualify for. Although, if you sit tight, we'll walk you through the process of claiming your standard solar energy tax credit in just a bit. In fact, speaking of that solar energy tax credit...
Federal Tax Credits
As mentioned, through the Residential Renewable Energy Tax Credit and the Business Investment Tax Credit, homeowners and businesses can get a 30% credit for costs expended to install solar equipment.
However, that percentage only applies if you install your solar panels until 2032. So, if you're in Wyoming and interested in going solar, take advantage of these federal tax credits now.
How much can you expect to save? We estimate that our customers save an average of $12,350 in tax credits when switching to solar. You can qualify your home here if you're wondering how much you can save.
Other Tax Credits
While it's discouraging to hear there's no Wyoming solar program (yet), there are plenty of tax incentives to weigh in your decision.
One of them is the rebates provided by public utility companies. The best part? Most are 100% non-taxable thanks to federal programs like the Residential Energy Conservation Subsidy Exclusion.
How to Claim Federal Solar Credits
If you want to capitalize on the current 30% solar tax credit the federal government offers, you'll first need to ensure you install your solar panel system this year. Doing so ensures you can claim it on your annual taxes, as it must be completed in the same calendar year you claim the credit.
Claiming the tax credit is an easy and simple process, though; all you need is to ensure that you meet the eligibility requirements and follow the necessary steps. Below is everything you need to know about how to claim federal solar credits.
Eligibility Requirements
To claim the federal solar tax credit, you must meet the following eligibility requirements:
1. You must own the solar panel system and have it installed in a home that you own and live in.
2. Your solar panel installation must be in operation by the end of the tax year you're claiming.
3. Your home must be located in the United States.
If you have met these eligibility criteria, you can claim the federal solar tax credit by following the steps below.
Step 1: Identify Your Tax Liability
The first step to claiming the federal solar tax credit is identifying your tax liability. Currently, the tax credit covers 30% of the total cost of your solar panel installation, so the amount of credit you'll receive will depend on your tax liability.
Step 2: Fill Out IRS Form 5695
Once you've identified the amount of tax credit you'll be eligible to receive, the next step is to fill out IRS Form 5695. This form will help you calculate the total amount of your solar panel installation cost and the credit you'll receive.
Step 3: Attach Form 5695 to Your Tax Return
The final step is to attach Form 5695 to your tax return. When you file your tax return, include Form 5695 and all other necessary documents to claim your tax credit.
The Bottom Line
Installing solar panels in your Wyoming home can help you save money on your energy bills and reduce your carbon footprint. By claiming the federal solar tax credit, you can make the investment even more affordable.
Just ensure you meet the eligibility requirements and follow the process for claiming the credit, and you'll be on your way to enjoying all the benefits that solar energy has to offer.
Wyoming Solar Panels: What to Know
Have we convinced you? Are you considering installing solar panels in Wyoming? Switching to solar energy has plenty of benefits, especially if you live in the Equality State. Here are some of the main perks of getting solar panels in Wyoming and how much energy you can expect to produce.
Benefits of Wyoming Solar Panels
First and foremost, installing solar panels can help you save money on your electricity bills. With abundant sunshine throughout the year, it's no surprise that Wyoming is a great place to harness the sun's power.
By generating your own electricity, you can reduce your reliance on the grid and enjoy lower energy costs. In addition, you'll also be doing your part to help reduce our collective carbon footprint.
Another advantage of getting solar panels in Wyoming is the potential boost to your property value. Many home buyers are looking for energy-efficient homes, and having solar panels can be a selling point. According to a Lawrence Berkeley National Laboratory study, homes with solar panels sold for an average of $15,000 more than comparable homes without solar panels.
How Much Energy Do Solar Panels Produce?
The amount of energy your solar panels will produce depends on various factors, including the size and orientation of your system and your location in the state. However, Wyoming generally receives plenty of sunshine throughout the year, so you can expect your solar panels to generate significant energy.
Speak with a Solar Expert
There are many benefits to installing solar panels in Wyoming, including lower energy costs, a reduced carbon footprint, and potentially higher property values. With plenty of sunshine to go around, you can expect your solar panels to generate a significant amount of energy.
If you're considering switching to solar, be sure to do your research and find a reputable local installer who can help you navigate the process. And, be sure to claim that federal solar energy tax credit.
Ready to start the process? Contact us today to speak with one of our solar experts.
