Americans can reduce their tax bill by $6,000 by taking advantage of a little-known credit called the Federal Solar Tax Credit.

The Federal Solar tax credit, a little-known credit

Americans just need to have met two criteria to get the deduction offered by the Federal Solar Tax Credit, and there are other financial incentives available too aside from the Federal Solar Tax Credit.

According to The Sun article, there is good news for Americans who installed solar panels in their homes during the last tax year because the Federal Solar tax credit is offering a tax deduction worth 30% of the total investment homeowners made in solar.

The Federal Solar tax credit covers costs including:

1. Solar panels or PV cells
2. Solar water heaters
3. Energy storage devices with a capacity of 3 kWh or more
4. Contractor labor expenses, including site preparation, assembly, or initial installation
5. Permit fees
6. Inspection costs

Developer fees

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The Federal Solar tax credit is Officially called the Investment Tax Credit

The Federal Solar tax credit bonus is available to Americans across the nation. For example, if you spent $20,000 installing solar, you could reduce your tax bill by $6,000.

To get the Federal Solar tax credit, you must have installed solar panels during the last tax year. The Federal Solar tax credit is only available one time.

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