Don’t Delay Your Solar Dreams – Act in 2020 for the Best Incentives!
These are uncertain times, but you can likely make one thing more certain, your energy bills . You can do that by going solar for your home or business. Don’t delay on starting your solar project any longer, because 2020 is the last year that you can monetize the 26% federal Investment Tax Credit without further legislation being passed to protect the ITC.
What exactly is the federal Investment Tax Credit? It is a dollar for dollar credit against your tax liability – not a deduction. This credit covers 26% of your total solar project costs. For example, if you owe $5,000 in taxes, that $5,000 is your tax liability. If you bought a solar system for $20,000, 26% of that system cost is $5,200. That means – you can apply your $5,200 tax credit against your $5,000 tax liability to owe $0, with $200 credit to carry over into the next year. Are you interested in learning more about solar investments and financing options? You can learn more here.
Disclaimer – we are not tax professionals, we are solar experts. Please consult with your tax advisor to see how the 26% federal Investment Tax Credit can work best for you.
To achieve this 26% tax credit, you must act quickly as our end of the year queue is filling up! Any residential projects installed on or after January 1st, 2021 will qualify for 22% of your total project costs as the tax credit drops next year. If you own a business with an array scheduled for installation in 2020,, you do not need to have the array fully completed by the first of the year to benefit from the tax credit. You can pay for a substantial portion of the array before the year-end to apply the 26% to your 2020 taxes. On January 1st, 2022 the Federal Investment Tax Credit drops to 0% for residential projects, and 10% for commercial projects.
The federal Investment Tax Credit is set to phase out as described above, unless new legislation is passed to reinstate it. Since the implementation of the Federal Investment Tax Credit, the solar industry in the United States has grown by 10,000% – creating thousands of jobs, and adding megawatts of clean energy onto our grid. Want to learn more about the history of the federal Investment Tax Credit, and what organizers are doing to defend the federal Investment Tax Credit? Visit the Solar Energy Industries Association website to learn more.
The best time to go solar is now! Ready to get started on your no-cost, no-obligation solar quote? Fill out this easy questionnaire to get started on making your solar dreams a reality!