Dec. 28, 2020
Good News: 26% Solar Investment Tax Credit (ITC) Extended!
By Creative Energies
Here's some positive news for the future of solar energy and battery storage: the solar Investment Tax Credit (ITC) was extended at 26% with the stimulus package going into law. The ITC was scheduled to drop to 22% in 2021. If you were waiting to see what would happen to solar tax credits before moving forward with your solar plans, now you can know you could save thousands in the new year with the ITC extension. The sooner you take advantage of this solar tax incentive, the sooner your solar investment will start working for you!
Contact us at 866.332.3410 or info@CEsolar.com and we will provide you with the latest information about solar incentives.
Solar ITC Details for Residential and Commercial Projects
The Federal Solar Investment Tax Credit (ITC) is valued at 26% of your total solar power system cost through 2022 for residential and commercial properties. This means that you'll receive a tax credit of 26% of your system's cost. This credit is used when residential homeowners or commercial businesses purchase solar systems and have them installed. 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 rollover the remainder to the next year. You should check with a tax adviser to make sure you can claim the entire value.
The Solar ITC will phase down every year after 2022: the Solar ITC drops to 22% in 2023; then, in 2024 the residential solar tax credit will be phased out and the commercial tax credit will drop to 10%. So take advantage of this Solar ITC now!
The Solar ITC extension is included in the stimulus package legislation H.R. 133.
Solar ITC and Backup Power Batteries
If you add a battery for backup power like the Tesla Powerwall to your solar system, it also qualifies for this tax credit at 26 percent.
Local Solar Tax Credits, Rebates, and Incentives
In addition to the Federal Income Tax Credit, your locality at a state, county, city, or town level may have additional solar incentive programs. Learn more about your local area’s solar incentives:
Creative Energies has worked on several community-sponsored solar programs. We closely follow and advocate for renewable energy policies and programs, so we'll keep you updated to make sure you are getting all the available savings for your system.
Ready to take advantage of financial incentives?
Contact Creative Energies at 866.332.3410 or info@CEsolar.com and we will help you go #SolarForGood!