The Federal solar tax credit was created to help grow the Solar Industry by making solar more affordable to homeowners. It offered people the ability to deduct up to 30% from their federal taxes. Over the last couple of years, it’s been extended. In 2020 we are going to see the Federal Tax Credit reduce to 26%. This may not seem like a big change, buy let’s do the math.
Residential Solar System
$20,000 cost of system
30% tax credit amount = $6000
26% tax credit amount = $5200
Commercial Solar System
$70,000 cost of system
30% tax credit amount = $21,000
26% tax credit amount = $18,200
That’s a $800 – $2,800 difference you’re going to be expected to pay. What could you do with that extra money in your pocket? Now dont worry to much because there are other incentives like local state and utility and we can help you maximize those. For business customers we have MACRS Program.
This federal tax credit is going to continue to reduce the credit more until 2022 when it could go to 0% for residential customers.
Now is the time to act, there is no point leaving money on the table.
We can help you maximize your federal, state and local utility credits. Ready to find out more?