Solar Tax Benefits in Arkansas

If you're considering investing in solar energy for your home or business in Arkansas, it's essential to understand the various tax incentives and benefits available to you. At Horizon Roofing, Solar, and Exteriors, we're committed to helping our customers maximize their savings and return on investment when transitioning to solar power. Let's explore the solar tax benefits available in Arkansas and how they can make solar energy more affordable for you.

Solar Tax Benefits in Arkansas:

1. Federal Investment Tax Credit (ITC):

   • The Federal ITC allows homeowners and businesses to deduct a percentage of their solar system's cost from their federal taxes.
   • As of 2023, the federal ITC offers a tax credit of 26% of the total system cost for systems installed by December 31, 2024.
   • The tax credit percentage is set to decrease to 22% for systems installed in 2025 and beyond, making now an ideal time to take advantage of higher savings.

2. State Solar Incentives:

   • Arkansas does not currently offer a state-level tax credit for solar installations. However, the state's net metering program allows solar system owners to receive credit for excess electricity generated by their system and exported to the grid.
   • Additionally, Arkansas offers property tax exemptions for renewable energy systems, including solar panels. This exemption can help reduce property taxes for homeowners and businesses with solar installations.

3. Accelerated Depreciation for Businesses:

   • Businesses that install solar energy systems may be eligible for accelerated depreciation, allowing them to recover the cost of their solar investment more quickly.
   • Under the Modified Accelerated Cost Recovery System (MACRS), businesses can depreciate the value of their solar system over five years, providing significant tax savings.

How to Claim Solar Tax Benefits:

1. Federal ITC:

   • To claim the Federal ITC, you must file IRS Form 5695 along with your federal tax return.
   • Consult with a tax professional to ensure you meet all eligibility requirements and properly claim the tax credit.

2. State Incentives:

   • While Arkansas does not offer a state-level tax credit, be sure to take advantage of the property tax exemption for renewable energy systems.
   • Consult with your local tax assessor's office to learn more about the property tax exemption and how to apply for it.

Consultation and Assistance:

• Contact Horizon Roofing, Solar, and Exteriors to schedule a consultation and learn more about solar tax benefits in Arkansas.
• Our team will guide you through the process of understanding and maximizing your solar savings, ensuring that you take full advantage of available incentives and tax benefits.

Areas We Serve:

• Fayetteville, AR
• Rogers, AR
• Springdale, AR
• Bentonville, AR
• Fort Smith, AR
• Van Buren, AR
• Greenwood, AR
• Hot Springs, AR
• Sallisaw, OK
• Poteau, OK

Conclusion: Take advantage of solar tax benefits in Arkansas to make the switch to clean, renewable energy more affordable for your home or business. With Horizon Roofing, Solar, and Exteriors, you'll have the support and expertise you need to navigate the tax incentive landscape and maximize your solar savings. Contact us today to learn more about solar tax benefits and start your journey towards energy independence.