Solar water pumping systems may qualify for the federal solar Investment Tax Credit (ITC). Here's what you should know about potential tax benefits.
Federal Solar Investment Tax Credit
Current Status
The federal solar ITC provides a tax credit for qualified solar energy systems:
- Applies to residential installations
- Includes solar water pumping systems
- Credit applied against federal taxes owed
Credit Percentage
The credit percentage varies by installation date. Current rates should be verified with tax professional or IRS guidance for the year of your installation.
What May Qualify
Simple Pump Solar Components
Potentially qualifying components:
- Solar panels
- Charge controller
- Mounting hardware
- Wiring and connections
- Installation labor (solar components)
What Likely Doesn't Qualify
- Hand pump components (not solar)
- Motor unit alone (without solar)
- Non-solar installation labor
- Well drilling or modification
Important Considerations
Consult a Tax Professional
Simple Pump is not a tax advisor. Tax credits have specific requirements and eligibility criteria. Consult a qualified tax professional regarding your specific situation before claiming any tax credit.
Documentation Requirements
If pursuing the credit, you may need:
- Itemized receipts
- Proof of solar components
- Installation records
- System specifications
- Manufacturer certifications
State and Local Incentives
Additional Programs
Beyond federal credit, check for:
- State solar tax credits
- State rebate programs
- Utility rebates
- Local incentives
- USDA rural programs
Varies by Location
State incentives differ significantly:
- Some states have substantial programs
- Others have minimal incentives
- Programs change frequently
- Research current offerings
How to Research
Federal Credit
- IRS website for current guidelines
- Form 5695 (Residential Energy Credits)
- IRS publications on energy credits
State/Local Programs
- Database of State Incentives (DSIRE)
- Your state energy office
- Local utility programs
- Solar industry associations
Simple Pump's Role
What We Can Provide
- Itemized invoice showing solar components
- Product specifications
- Installation documentation (if we install)
- General product information
What We Cannot Provide
- Tax advice
- Credit eligibility determination
- Tax form preparation
- Legal interpretation of tax law
Getting Your Solar System
Quote Process
When requesting a quote:
- Specify interest in solar option
- We'll itemize solar components
- Keep all documentation
- Consult tax professional
Installation Records
Maintain records of:
- Purchase receipts
- Installation date
- Component list
- System configuration
Cost-Benefit Consideration
Solar System Investment
Even without tax credit:
- Reduces operating costs
- Provides energy independence
- Increases property value
- Long-term savings
With Potential Credit
Tax credit may significantly reduce:
- Net system cost
- Payback period
- Overall investment
Next Steps
Interested in Solar?
- Request quote for solar configuration
- Review itemized pricing
- Consult tax professional
- Make informed decision
Questions About Products?
Technical Support: 877-492-8711 ext. 6
Tax Questions?
Consult qualified tax professional in your area.