The Consolidated Appropriations Act, signed in December 2015, extended the expiration date of the Investment Tax Credit (ITC) for solar, wind and geothermal electric systems and introduced a gradual step down in the credit value for this technology.
The Investment Tax Credit (ITC) is currently a 30 percent federal tax credit claimed against the tax liability of residential and commercial investors in solar energy property. The Section 25D residential ITC allows the homeowner to apply the credit to his/her personal income taxes. This credit is used when homeowners purchase solar systems and have them installed on their homes. A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company would otherwise pay the federal government. This is a credit, not refund, so you can’t get more back in a single year than you owe. The remainder of any credit will roll to next year’s taxes. The credit will roll over as long as the credit is in effect. There is no cap on how much one can claim. Click here to get more information
Keep your receipts for everything! Covered expenses include:
Solar consulting fees
Freight and shipping costs
Tools and equipment that were rented or purchased for the job (lifts, ladders, scaffolding, etc)
Consumables – nuts, bolts, screws, wire, etc
Professional installation fees
Act now to receive your 30% Tax Credit. The credit drops to 26% for 2020, 22% for 2021 and then 10% for commercial installations and 0 for residential in 2022. If we have created a sales quote for you now is the time to convert it to an order. If not, call us today to get a quote or more information on how to save money. As always, consult your accounting or tax professional to determine your actual tax liability and how this tax policy can benefit you.
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Request A New 2020 Planning Guide & Catalog
Our new 2020 Planning Guide/Catalog is free and has the information you need to make smart choices in the design of your renewable energy solution. Click here to request a free catalog today.