Federal Solar Tax Credit for Homeowners
Did you know that you can claim a solar tax credit for going solar? Many homeowners don’t know this, and it’s a big deal. The Federal Investment Tax Credit (ITC) is aimed at giving anyone who purchases a solar system to deduct a percentage of what it cost you for the installation on your federal taxes. And here is the best part: there’s no cap! How great is that?
What the Solar Tax Credit Means for You
You can potentially save a few thousand dollars on your taxes for having a Solar Photovoltaic Technology system installed. This benefit isn’t just for residential systems, but also applies to commercial systems as well. According to a EnergySage article, the average shopper “saves nearly $9,000 on the cost of going solar.”
This tax credit has been around for a while. It was originally supposed to end in 2007, but Congress moved to extend it many times since then and was last extended in December 2020 for two more years. So take advantage of this while you can. There could be a chance it gets extended again, but why wait? The percentage amount that you can deduct decreases based on the year you have your system installed. In 2016-2019, it was 30%. For installations in 2020-2022, it’s at 26% and for 2023 it goes down to 22%.
Am I Eligible?
You can get more details over at the IRS site’s Q&A page and the TurboTax Overview page. Here are some to get you started.
- Your system was installed between Jan 1, 2006 and Dec 31, 2023
- The installed system is at your primary or secondary residence where you live in the US
- You own the installed solar energy system
Don’t Delay, Start Preparing Now!
We’ve only covered the basics here in this article, but there is much more you need to know about this awesome tax credit. SKR Solar is a NABCEP Certified PV Installation Professional and can assist you in determining your solar needs. We’ll help you get the right system installed, you can take advantage of the solar tax credit for the next tax season. Connect with us today to get started.
