Homeowners who purchase a solar powered gate operator manufactured after December 31, 2008, may qualify for a 30% Federal Tax Credit off the installed cost of the system. This tax credit is available for the installed cost of the solar powered gate operator on the homeowner’s Federal tax return.
Note: The 30% investment Tax Credit (ITC) for residential and commercial solar systems will expire on December 31, 2019, then the ITC steps down to 26% in 2020 and 22% in 2021. After 2021, the residential credit will drop to zero (0) while commercial and utility credit will drop to a permanent 10%. Commercial and utility projects which have commenced construction before December 31, 2021 may still qualify for the 30, 26 or 22 percent ITC if they are placed in service before December 31, 2023. The Treasury and IRS are currently drafting guidance which will inform solar developers of which percentage of ITC they will qualify for depending on when they started their project.
The solar powered gate operator is considered a “Qualified Solar Electric Property” authorized by the Internal Revenue Code Section 25D under the definition provided in paragraph d.2 and as such qualifies for the Residential Energy Efficient Tax Credit. You will need to complete Federal Form 5695 and attach it to your personal tax return in order to claim this credit. If you have any questions regarding this Federal Tax Credit, Form 5695 or its instructions, please consult your tax adviser. You should also check with your state tax agency to see if your state offers any additional solar energy tax incentives.
The solar system tax credit applies to the total installed cost of the solar gate operator system. This includes the related solar panel, gate operator, solar control box, access control device, remote controls, entrapment protection device(s), etc. The cost of the gate itself, or work required to place the physical gate into proper working order (leveling, replacing hinges, etc.).
- The installation of a Solar Powered Gate System
- Effective for tax years beginning after December 31, 2008
- You will need to use The Federal Tax Credit form 5695, Residential Energy Efficient Property Credit
- You will need to provide a copy of the “Manufacturer’s Certification for Credit”
- The dwelling must be located in the United States and used as a residence by the taxpayer
- This offer is only available in the United States