The solar energy industry is burdened with deadlines. From utility rate changes to diminishing incentives – we work hard to keep our customers informed of the evolving landscape so that they can make informed decisions and benefit from grandfathering clauses that allow them to lock-into today’s best programs before they’re gone.
Here are the most critical things you need to know about the solar Investment Tax Credit (ITC) in 2020.
- A 26% tax credit is still substantial
The ITC dropped to 26% on January 1, 2020. While the loss of 4% is certainly noticeable, 26% still offers substantial savings potential. With that said, if you’ve been considering solar, there’s still time to leverage the 26% credit. An assessment costs nothing and you get more information about what it would take for you to install a solar system in your home form the experienced professional solar company.
- What does and doesn’t qualify for the solar tax credit
We always recommend that you consult a tax accountant for advice when preparing your taxes, but in the broadest strokes, here’s what qualifies for the ITC. This is a summary of the major criteria sourced from a recent article published in Consumer Reports. Consult an accountant for more comprehensive details.
- The entire purchase price for the system, minus sales tax. This includes panels, inverter, demand manager, battery, racking and wiring, as well as labor costs for all on-site preparation and installation.
- System must be purchased or financed. Leases do not qualify.
- The system must be installed on a residence that you live in for at least part of the year. Under certain circumstances, this could include a home that you rent out part of the year. The credit is pro-rated based on how much time you spend in it. Consult a tax accountant for details.
- Leased systems do not qualify. In the case of leases, the company that leases it to you retains the incentive.
- Solar installed on an income property where you don’t maintain at least partial residence does not qualify.
- Systems used exclusively to heat swimming pools hot tubs or hot water heaters do not qualify.
If you’re looking to go solar, now is the time to act. With the 26% solar tax credit decreasing again at the end of this year, going solar now will ensure the biggest and fastest return on your solar investment. Contact Sunlight Solar, Inc. and get your free preliminary estimate today. Call us at (888) 410-1477 if you have any questions or you are interested in our services.