It is officially April! Spring weather, sunshine, Earth Day, and…. tax day. But we have good news. You can utilize that Texas sunshine by going solar, and get a federal solar panel tax credit equivalent to 30 percent off your entire system cost. SunPower has broken down the details and created a quick guide for basic info on the commercial solar energy tax credit.
The Federal Business Energy Investment Tax Credit (ITC) was passed in late 2015, giving a tax credit to individuals and businesses that invest in renewable energy. You can take advantage of this 30% tax credit as a business owner, or homeowner, when you’re installing solar. In other words, this credit helps offset solar panel costs. This credit is applied to your income tax debt.
Depending on when construction (and electricity generation) is started, the tax reduction could be up to 30%. However, the solar ITC is a step- down plan; meaning the benefit is reduced as time goes on. The tax reduction decreases from 30% to 26% on January 1st, 2020, down to 22% on January 1st, 2021, and only 10% if your system goes online after January 1st, 2022.
Also, homeowners and businesses can choose to receive their full credit when the system goes online, or receive it over time. Any unused credits can be rolled over into the next tax year, as long as the solar ITC is still in effect.
Freedom Solar can help you navigate the solar tax credit, so you get all the benefits you deserve. Remember, the solar ITC decreases over time. The sooner you act, the higher tax credit you will receive, meaning more money in your pocket.
For more information on the tax credit, how to go solar, or for a free solar consultation, give us a call. You can also visit our Solar Design Center in Austin to see our premium SunPower® panels and mounting systems.