Colorado

If threats of global warming and dangerous greenhouse gases aren’t enough reason to seek alternative sources for energy, federal business and residential solar tax incentives can encourage homeowners and corporations to purchase solar energy systems.

A tax credit can provide significant savings because it reduces the amount of income tax a person has to pay. Unlike a deduction, which reduces the amount of income subjected to tax, a tax credit reduces the tax itself. Credits similar to the consumer credits are also available to businesses that install qualifying solar equipment.