All good things must come to an end and the Federal Solar Tax Credit is no different. But the end isn’t here just yet…
In response to growing demand for cleaner energy sources the EPA established the Solar Tax Credit in 2005. Originally intended to last only through 2007, the program still continues to this day. The tax credit has proven itself to be an effective incentive to transition homeowners to a cleaner energy source.
The Solar Tax Credit does not end entirely in 2019, but instead begins a gradual process of ramping down:
- 2019 – The solar tax credit remains at 30%
- 2020 – Homeowners and commercial solar system installation will benefit from a 26% tax credit
- 2021 – Homeowners and commercial solar energy system installation will benefit from a 22% tax credit
- 2022 onward – Only owners of new commercial solar system installation will benefit from a 10% tax credit of the cost of installation. There are currently no federal tax credits for residential solar system installations from 2022 onward.
Going solar is a process that usually takes a few months from start to finish:
- Choosing which company is right for you to work with
- Figuring out what system is right for your home and needs
- Obtaining permits from your city
- Completing the installation
- Taking the system live
Luckily for prospective solar buyers there is still plenty of time to get the solar tax credit at 30%. Due to how the tax credit changes are implemented your system only needs to have construction begin this year. It doesn’t need to be fully-installed and commissioned to be eligible for the credit.
In short – 2019 is the year to make the leap to solar. Besides increasing the value of your home and lowering your energy bills, you’ll be able to take advantage of a generous tax credit for solar that we’ll never see again.
Start your project with Sunline in 2019 to get your 30% Solar Tax Credit – 858-252-2280 Click to call to contact us today for a free consultation.
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Solar Federal Tax Credit (ITC) UPDATE 2021
Extended renewable federal energy tax credit have been included in the $1.4 trillion stimulus package along with a $900 billion COVID-19 virus relief spending bill. The solar investment tax credit (ITC), was planned to drop from 26% to 22% in 2021 and drop to 10% in 2022. However, the 26% credit will stay for two more years.
What this means for the solar power industry is that solar projects in the residential and commercial market can being solar installation in 2021 and 2022 will be able to receive a tax credit of 26%. In 2023 the credit will be dropping down to 22%
The extension for the tax credit was supported from many people such as congressional leads and a large group of bipartisan mayors. Many bills have been introduced in the past years to extend the ITC tax credit, but unfortunately nothing was agreed on.