Have you been thinking about making the switch to clean energy? If so, there is a Federal program that can significantly lower the overall cost of a new solar installation. Known as the Federal Investment Tax Credit (or ITC), this solar tax credit incentive program can possibly save you thousands. These savings, however, are only available for a limited time. It pays to start planning now.
How does the solar tax credit work?
Via our tax dollars, we all contribute to the Federal ITC solar tax incentive. It has been one of the driving factors behind the boom of solar energy in the United States, and a huge reason why so many of your neighbors have made the switch to clean, affordable, renewable solar energy. Importantly, the tax credit is much different than a deduction. This will be a credit directly to the amount of income tax you owe. If you are a W-2 employee this usually means a larger tax season refund. Put your tax dollars to work and explore solar energy options for your home!
How much can I save with the solar investment tax credit?
Originally established in 2005, the solar ITC incentivizes renewable energy by allowing to solar customers to deduct a significant percentage of the overall cost of the project from what they owe on their Federal income taxes. In 2022, the solar tax credit allows for a 26% reimbursement of the project cost. This applies to both residential and commercial systems – with no cap on the value. In fact, the average Solar Alternatives client saves nearly $10,000 on the cost of going solar thanks to the ITC!
…But not for long.
While the ITC Federal tax credit for solar installations reimburses 26% of the project price this year, the tax credit is set to drop down to 22% in 2023 and is scheduled to sunset entirely for residential customers by 2024.
So, don’t wait.
Considering how the price of solar has fallen over 80% in the last decade, there has never been a better time to make the switch. With the added ITC incentive, the decision becomes even easier. There is limited time left to save. Waiting could mean hundreds or, potentially, thousands of dollars in lost savings. It is also important to note that installations must be complete by the end of the calendar year to qualify for the solar tax credit.
Bottom line: now is the time. Get in touch to day to schedule your FREE consultation.