Homeowners considering solar energy might want to make a decision before the end of the year in order to get their full 30 percent tax credit which is set to phase out.
Solar investment tax credit phase out.
How long is the federal solar tax credit available for use.
The solar investment tax.
The residential renewable energy tax credit as the irs calls it can be an attractive way to save on the significant cost of installing solar panels or roofing an average sized residential solar.
As mentioned before if it costs 10 000 to buy and install your system you would be owed a 2 600 credit.
Bigger system bigger credit.
The federal solar tax credit also known as the investment tax credit itc is one of the best financial incentives for solar in the united states it allows you to deduct 26 percent of the cost of a solar energy system from your federal taxes and there s no cap on its value.
The federal government is gradually going to phase out the solar tax credit.
By 2020 it ll be worth 26 then 22 in 2021.
If you install solar panels before the end of 2020 you will receive a tax credit that is equal to 26 percent of the cost of your solar installation.
Since the investment tax credit is applied to your solar array s gross system cost the amount you receive is dependent on the amount of solar you re purchasing.
Thanks to the popularity of the itc and its success in supporting the united states transition to a renewable energy economy congress has extended its expiration date multiple times.
The solar investment tax credit itc is one of the most important federal policy mechanisms to support the growth of solar energy in the united states.
The history of the solar investment tax credit.
It will remain at 30 for residential consumers until the end of 2019 so you re running out of time to take advantage of the full credit.
Right now the solar investment tax credit itc is worth 26 of your total system cost.
The itc applies to both residential and commercial systems and there is no cap on its value.
Economy in the.
Since the itc was enacted in 2006 the u s.
This includes the value of parts and contractor fees for the installation.
Solar industry has grown by more than 10 000 creating hundreds of thousands of jobs and investing billions of dollars in the u s.
The itc was originally established by the energy policy act of 2005 and was set to expire at the end of 2007.
