solar
TAx credits Transfers

Tax Credits are the Holy Grail for Income Taxpayers.  The Inflation Reduction Act of 2022, the largest climate bill in history, created the ability to transfer renewable energy tax credits.  Here’s an example. 

A homeowner named John Smith has an average home and purchased a 10KW solar system to help offset his electric bills in 2023.

John finances the system, signs a contract for $50,000, and receives a 30% Federal Income Tax Credit at the IRS worth $15,000, therefore, the next $15,000 of income taxes are paid in full.

Since John is retired and pays no income taxes, he cannot recoup the $15,000 tax credit.  It is sitting at the IRS waiting for him to pay income taxes.  He may need to win the lottery or earn more to get it back from the IRS!

However, John can transfer his tax credit to another party and get some cash for his dead asset.

Along comes Richie Rich who is paying a ton in income taxes… he will gladly pay John for his tax credit at a discount to reduce his tax liability.

Here’s the catch, only commercial solar incentives are transferable.  Luckily Solar Tax Pros helps residential homeowners qualify for commercial solar incentives to create extra solar incentives that are also transferable.

If you are interested in buying or selling tax credits, please fill out the form below.