September 7, 2022
Lowered energy expenses, increased property value, and security from power outages are just a few of the compelling arguments for going solar. However, did you know that putting in solar can also make you eligible for a tax credit?
Continue reading to find out more about how tax incentives complement solar power installations.
You are qualified for the solar investment tax credit if you own your solar energy system. For as long as the tax credit is in place, you can “roll over” any residual credits into future years even if you don’t have enough tax liabilities to use the entire benefit in one year (so, through 2034 for residential systems as it stands today). However, keep in mind that you cannot claim the tax credit if you enter into a lease or power purchase agreement (PPA) with a solar contractor because you are not the system’s owner.
Finally, it’s crucial to remember that the ITC program has no income restrictions, so that taxpayers in all income groups may qualify.
A percentage of the cost of your solar power system may be deducted from your federal income taxes under the federal solar tax credit. A law passed by Congress in December 2020 allows you to receive credit for up to 30% of the cost of installing a solar system on your home. Depending on when you installed the equipment, you may be entitled to claim different amounts:
Also Read: How Much Power Can a Solar Panel Generate?
Are you unsure if you qualify for a tax credit? The prerequisites are as follows:
Many states additionally provide tax advantages for owners of solar power systems in addition to this federal tax credit! The set of laws in each state varies.
Learn how a solar power system can help you, your house, and your taxes by speaking with one of our helpful solar specialists. Call us right away!