How can the solar tax credit help you save this year?
January 15, 2020
The Federal Solar Investment Tax Credit (ITC) is a powerful tool that helps you save with a new solar photovoltaic (PV) system. The ITC is a 26 percent tax credit, with no cap, that helps make solar more affordable for homeowners and business owners. When you install solar panels at your home or business, 26% of the installed system cost comes back to your bottom line as tax savings.
You can recognize the tax benefit of a new solar solution on your 2020 tax return if your system is installed and turned on before the end of the year. Solar projects completed after December 31, 2020, will delay savings by a year. It can take about 60 days to obtain the necessary approvals and inspections, install the system, and energize it. Freedom Solar makes it easy for you with our 7 Steps to Solar process, and our customers tell us that we deliver on our promises.
If you’re excited about making your own clean energy and you want to maximize your financial benefit, it’s time to get a free, no-obligation consultation from one of our energy consultants.
The ITC itself will not be around forever, and it has already stepped down from 30% through 2019. After being scheduled to expire in 2016, Congress extended the 30% credit through 2019. The credit will step down to 22% in 2021, and it will disappear for homeowners in 2022. Businesses will remain eligible for a 10% tax credit in perpetuity starting in 2022. Learn more about the ITC from Energy Sage and the Solar Energy Industries Association (SEIA).
If you’ve been thinking about going solar and you want to reduce your tax burden as you lower your electric bill with solar, get started with Freedom Solar today!