By now you’ve probably spoke to an Energy Specialist and are diving deeper into the topics discussed to understand more specifically how certain incentives and benefits work.
Some of the incentives available in solar come in the form of rebates, grants and/or tax credits. This brief article will shine light on specifically the 30% tax credit currently offered by the Federal Government here in the United States.
Solstice Energy is not certified to offer financial advice and we absolutely encourage you to have this conversation with your financial advisor but we hope at least a general description will help you better grasp this incentive and start to form the proper expectation of how it will work.
“This is not a check the Federal Government is going to send you.”
A tax credit, is credit for taxes owed. This is not a check the Federal Government is going to send you. In certain instances where taxes have already been withheld this may be the case but the credit is in place to satisfy tax liability.
If at the end of the year you have tax liability and qualified for the tax credit that liability may be satisfied with this tax credit. Any unused credit will carry forward to the following year offsetting liability for that year.
“The Federal Tax Credit is a pretty major statement by the Federal Government on the importance of adopting renewable energy.”
The Federal Tax Credit is a pretty major statement by the Federal Government on the importance of adopting renewable energy. This tax credit can greatly reduce the overall cost of going solar and make going solar a very economically beneficial experience with benefits in a multitude of different areas.
Although this benefit is telling and greatly offsets the cost of a solar system, it is set to taper off in the coming years. Here in 2019 we are in the very last year of it’s value being at 30%. Next year in 2020 the value will fall to 26% of the system cost with it falling yet further in 2021 to 22%, then down to 10% in 2022.
For those interested in capturing the most significant incentives when converting to solar it may be wise to get a proposal here in 2019 with the credit at it’s highest level.
If you’d like a proposal outlining what solar can do for you including projections of incentives and benefits you could capture, converting your home to solar, please don’t hesitate to reach out to us anytime as we’ll be happy to prepare that for you.