Federal Solar Tax Credit Extended!
The Federal Solar Tax credit is an incentive that was introduced in 2016 to encourage consumers to go solar. Currently, if you own your solar energy system, the federal solar tax credit enables consumers to deduct 26 percent of the cost of installing solar on their home or business, from their federal taxes. Every few years, the Federal Solar Tax credit faces reductions in the amount of savings offered to potential solar consumers. You must install a solar energy system within the defined timeframe to reap its benefits.
Fortunately, the current 26 percent tax credit is still eligible to consumers who invest in solar BEFORE 2023!
If there was ever a time to invest in solar, it’s now. Following the end of 2022, the Federal Solar Tax credit will reduce to 22 percent. While 4 percent might not seem like much, it can equate to the difference of hundreds of dollars worth of savings.
For instance, investing in a $20,000 solar system TODAY could earn you a $5,200 tax credit!
If you invested in solar in 2023, then that $5,200 would turn into $4,400. That $800 makes a big difference and it’s free savings waiting for you to take. Pending further extensions, the Federal Solar Tax credit is scheduled to end in 2024, so now is the absolute best time to go solar! Another great benefit of this credit is that the credit can be used all at once, or it can be used over the next 20 years.
If you are credited $5,200 and you owe $4,000 on your taxes for this year, your tax bill will be reduced to ZERO, leaving you with the remaining $1,200.
That $1,200 can then be carried onto the next year for your future returns. According to Section 48 of the Internal Revenue Code, you can carry your credit back one year and forward 20! If you have a tax liability from last year then you could use the tax credit earned from this incentive to cover the cost of your previous liability, or you could roll it over for future tax liabilities. Incentives like this, help to make going solar more accessible and affordable to potential customers.
Going Solar with SolarTech
SolarTech is here to help you go solar and get the savings that you need! We’ve been providing end-to-end solar services to California for over 20 years, and we’re committed to providing quality customer service. If you would like to take advantage of the 26 percent tax credit today, give us a call!
Call (619) 743-9193 Today!