In 2005, the federal Energy Policy Act created a 30% Investment Tax Credit (ITC) for installing home and commercial solar energy systems.
The ITC is more than a tax deduction; as a tax credit, it’s a dollar-for-dollar reduction of the income tax you’d otherwise have to pay. As such, it was like money going right into your pocket – sometimes as much as $10,00 or more, depending on the cost of your system.
The tax credit was only supposed to last until 2007. But when Congress saw how it increased solar energy installs by 50% a year, Congress started extending it.
But if all good things come to an end, the solar Investment Tax Credit is, unfortunately, no exception. Under new law enacted this year, the ITC will start phasing out as soon as year’s end, as follows:
- In 2020, that 30% tax credit will shrink to 26%.
- In 2021, to 22%.
- Starting 2022, it’ll be gone completely for homeowners.
Industry insiders are predicting a “historic” year for residential solar installations because so many homeowners are buying solar systems this year instead of later. So if you’ve been seriously considering solar, it pays for you to join them now.
The year’s already half gone, and this is the best season for performing solar installations. So don’t wait to click here for a free solar consultation.
It’s the first step towards having a 30% happier new year.