Farmers and Businesses, Recover Last Year’s Taxes!
Did you know that you can get your 2016 taxes back? It’s true! If your 30% tax credit exceeds your 2017 tax liability, you can apply it retroactively to your 2016 taxes and receive a refund for taxes paid!
How Does it Work?
If you would install a $100,000 solar system, you would receive a federal tax credit in the amount of $30,000 or 30% of your total system cost. If you have a tax liability of $10,000 for the 2017 fiscal year, you can use the $30,000 tax credit to eliminate your $10,000 2017 tax liability. In addition, you would then be able to use the remaining $20,000 to go back one year to credit your 2016 tax liability. For this example, let’s say you paid $10,000 in federal taxes in 2016. You would be able to recoup your 2016 taxes, and still have an additional $10,000 to carry over into the next 20 fiscal years or until the tax credit is used up.
Total Solar System Cost: $100,000*
30% Tax Credit Amount: $30,000
2017 Tax Liability: -$10,000
2016 Tax Liability: -$10,000
Remaining Tax Credit for Future Years: = $10,000
*this is only an example, a solar system will vary significantly in price and is dependent on your electricity usage