Jan. 1, 2021. Great news! The recent federal stimulus package passed by Congress includes an extension of renewable tax credits.
The federal solar tax credit (known as the ITC) was extended for an additional two years. This means that you’ll receive a tax credit of 26% of your system’s cost in 2021 and 2022 and 22% in 2023. A tax credit is a dollar-for-dollar reduction of the income tax you owe. If you can’t use the full value in one year, you can roll over the remainder to next year. You should check with a tax adviser to make sure you can claim the entire value.
The credits apply to both residential and commercial solar. The residential market will drop to 0% in 2024, but the commercial and utility rates will remain at a permanent 10%.
The extension of the ITC demonstrates how committed the federal government is to growing solar across the country. Solar is here to stay.
Interested in going solar? Contact us today to get started on a free, no-pressure proposal.