Don’t Miss Out: The Federal Solar Tax Credit (ITC) is Decreasing Next Year
Many homeowners are looking for ways to reduce the out-of-pocket spending required for getting solar installed at their home. Federal Tax Credits may be a solution for your needs, but it is important to understand that the financial strategy is different for every homeowner. Our team of solar experts are here to ensure that you receive the best design, quality equipment and installation. They can also tell you about the tax incentives that are available to you. We encourage you to talk to a tax pro to learn about the ways you can use Federal Tax Credits available to help pay for the cost of a solar system.
Changes Coming to the Federal Solar Tax Credits
The Energy Policy Act, providing incentives for solar installations, was founded in 2005 and has had a variety of extensions to keep the program alive. As a result, it is estimated that the solar industry has grown more than 8,600% since 2006, now that homeowners have affordable access to renewable energy.
Based on the current Federal Tax Credits, tax savings for solar installations are available for homeowners until 2021. The tax credit claim amounts are going to start decreasing as of January 1, 2020. This step-down will affect the tax credits available for new solar installations. As a result, some people are choosing to install solar this year, in order to maximize potential tax credits that are offered. Here is a breakdown of how the Federal Solar Tax Credits will be decreasing:
- 30% is the current tax credit in 2019. It is slated to be offered through the end of the year.
- 26% will be the new rate starting January 1, 2020
- 22% is the anticipated rate for 2021
After 2021, it is expected that residential homeowners won’t be eligible for any Federal Tax Credits on solar installations.
Maximizing Your Solar Investment
Our team at New Day Solar doesn’t offer tax advice, which is why we always encourage you to work with a tax professional. We do however, have 31 years of expertise in solar installations. The foundation of our business is quality, trust and integrity and we will always give you honest answers to your solar questions. If you are thinking about going solar, consider having a solar system installed this year while the Federal Tax Credit is still 30%.
Are you interested in more information about having solar installed at your home? Call our team at New Day Solar for a no-obligation quote : (951) 927-7652 or visit us online at: www.newdaysolar.com