How can I become eligible for investment tax credits?
Whenever tax season rolls around, a lot of people plan on how they can get the most advantages of their circumstances to reduce their tax liability. Tax strategies look different for everyone depending on individual circumstances, such as education, investments, retirement plans, charitable contributions and more.
One way people can reduce their tax liability is to become eligible for an investment tax credit.
What is an investment tax credit?
An investment tax credit is a federal tax incentive for businesses or individuals. Those who are eligible can deduct a percentage of investment costs from their taxes. When first introduced in 1962, investment tax credits were used to help protect American businesses from foreign competition. However, these days, they are usually used as some sort of incentive for energy conservation or environmental friendliness.
At the moment, businesses and individuals who install solar energy systems in their facilities or homes may be eligible to deduct up to 26% of the cost of the installation from their taxes. The benefit is clean energy for the environment, reduced energy costs over time for the business or individual, and reduced tax liability via the investment tax credit.
Talk to a ProVise CFP® professional investment tax credits
Whether you are a business owner looking to reduce your annual expenses or a homeowner looking to reduce your personal tax liability, if you install a solar energy system, you should look into applying for investment tax credits.
Factoring investment tax credits and other tax advantages into your tax strategy can be challenging, especially if you have a busy schedule or are not experienced in the financial world. As a solution, you can work closely with a financial professional who can help you make investment decisions to reduce your tax liability and grow your wealth over time.
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about investment tax credits? Contact ProVise today to schedule a complimentary consultation.