Solar Installation Tax Credit Extended Through 2021
The federal solar tax credit, or federal Investment Tax Credit (ITC), was expected to decrease from 26% to 22% in 2021. But as part of the COVID-19 relief bill and federal spending package, the tax credit of 26% has been extended for the next two years. It will now decrease to 22% in 2023.
The tax credit for commercial installation will remain at 10%. When it comes to solar heating for stand-alone storage and commercial pools, they are still not eligible for the credit. But it will remain a continuing effort to include those aspects.
Make the Change to Solar in 2021
This extended chance to receive the larger tax credit is good news for those who would like to make a move to solar. If you couldn’t make it happen in 2020, you can go solar in 2021 with the same benefits.
Here are some reasons why 2021 is the year to install solar panels on your home:
No Limit to the Savings with the Federal Tax Credit: For an example of what the savings can look like, if you spend $30,000 on your home solar installation, the savings would be $7,800 in tax credit. That is the amount of money that you will deduct from your total taxable income.
Net Metering Rebates: In California, you are eligible for net metering credits. This means that your utility company will credit you back money for the energy you are saving. And this is in addition to the money you will already be saving on your bill for using solar energy instead of traditional electricity.
Environmental Benefits: As time goes on, solar energy benefits to the environment are discovered to be great. These incentive programs are in place because using solar energy in our everyday lives will help the earth. If you have been putting off solar installation and are ready to do your part in decreasing your carbon footprint, then take action today.
For any questions regarding solar installation, contact New Day Solar. Our team can talk about long-term savings and discuss how long the solar panels will last. If you are unsure about what kind of solar panels to get and the benefits of each, call for a free consultation to determine which solar panels are right for you: (855) 444-6329.