What is the solar tax credit (ITC)?
If you didn’t know about this credit, you’ve been missing out. But luckily for you, you have this last year to claim the full 30% federal solar tax credit.
The solar tax credit, AKA Investment Tax Credit (ITC), allows you to deduct 30% of the cost of solar installation from your taxes.
The tax credit applies to both residential and commercial property and, with no limit to it’s value, you can save a ton of money on that solar installation. On average, homeowners are saving $5,000 on the solar tax incentive.
Solar energy is more affordable than ever. Homeowners who thought they missed the boat are getting an extended time to take advantage of their savings.
Get your free solar quote and connect to the professionals you need with Home Professionals today.
How do I qualify for the federal solar tax credit?
If you have your own solar energy system, you can qualify for the ITC.
If you don’t have enough liability to get your entire credit this year, it can roll into other years as long as the solar tax incentive is in place (another reason to take advantage now).
Also, if you enter into a lease or PPA contract with your solar installer, they are essentially taking advantage of this tax credit for you. Since you are not the owner of the system, you would not receive the tax credit.
However, leasing solar panels or signing a Power Purchase Agreement allows many homeowners to get solar energy for very little money down.
The solar company uses the solar tax credit, installs their solar panels on your roof, then you buy the solar energy from them at a reduced price. All in all, this is a great option for homeowners who don’t wish to invest in solar energy on their own this year.
Why is it important to claim my solar tax credit this year?
The Energy Policy Act of 2005, the reason the solar tax credit exists, was set to expire at the end of 2007.
Because of its success, many extensions were added up until the end of 2016. After some evaluation, experts knew an additional five year extension could really bring the solar industry to fruition.
Congress passed a spending bill in late December 2015, so the tax credit is now available to homeowners in some version through 2021, though not in its full form.
- 2016 – 2019: 30% solar tax credit
- 2020: 26% solar tax credit
- 2021: 22% solar tax credit
- 2022 – ?: 10% solar tax credit for commercial property. There are no solar tax credits for residential solar energy systems.
Save another 10% with Home Professionals
Finding the best home professionals with the best deals takes a large amount of time, research, calling around, and gathering quotes.
Most find the process exhausting and it’s easy to push it off. But homeowners who look at more options tend to save another 10%.
Research indicates that the more quotes you can compare the more likely you are to save money. And the same research indicates that oftentimes, it’s your local professionals that have the best deals for your money than big national brands.
That being said, you don’t want to make a decision until that research has been done for your area and your needs.
You’re invited to save another 10% with Home Professionals today.
Home professionals has all the local and national connections to the best deals and pros in your area. Allowing you to enter your information once in our pro-finder then sit back and relax as the best come to you. Then you can make your own decision on what’s best for you.