Time is running out to get the maximum federal solar tax credit for your solar energy system. With the solar Investment Tax Credit (ITC), you can deduct 26% of the cost of your solar energy system on your federal taxes, lowering the overall cost of your solar energy system. Get going on your rooftop solar soon though, because this deal will only be around for two more years.
How to Get Your Max Solar Tax Credit
Purchase and install your solar energy system in 2021-2022 to claim the current maximum amount allowed with the ITC solar credit when you file your federal taxes.
Get It While It’s Hot
If you are a homeowner or a business that installs solar in any capacity, beginning construction in 2021 and 2022, you will be still eligible to receive the tax credit at 26%. This rate will fall to 22% in 2023, and finally, the residential rate will go down to 0% in 2024, while commercial and utility markets will sit at a permanent 10%.
How much can the solar tax credit impact your costs of going solar?
You could see as much as $9,000 or more because of this incentive. There is no cap. This applies to both homes and businesses looking to go solar and reduce their carbon footprint and energy bill.
What’s Not Covered by the ITC
With this solar tax credit, only the cost of your solar energy system is applicable. The cost of solar battery storage, which many add to their systems for further reliability, will not yield any tax savings. You can have solar without battery storage. As long as you are still connected to the grid, you can use traditional energy when it’s rainy or cloudy or nighttime.
When You Don’t Live Where You Solar
Even if the solar isn’t on your primary home, it is still eligible for the tax credit. As long as you live there at least part of the year and are the owner, you can claim the solar tax credit.
Tax credits are one way to reduce the overall cost of owning your solar energy system and another way to make solar work for your budget.
Our team of experts at Sun4 can help you make the most of the federal tax credits and reduce the cost of your solar energy system overall. Get started today to make sure you take full advantage of this phase of the ITC solar tax credit.