FEDERAL INCENTIVES
You will receive a tax credit for switching to solar energy, but the incentive will not last forever.
Scroll down to the FAQ section for more details.
FAQ
Also known as the investment tax credit (ITC), this credit allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes.
Here are the specifics:
- 2016 – 2019: The tax credit remains at 30 percent of the cost of the system.
- 2020: Owners of new residential and commercial solar can deduct 26 percent of the cost of the system from their taxes.
- 2021: Owners of new residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.
- 2022 onwards: Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes. There is no federal credit for residential solar energy systems.
As long as you own your solar energy system, you are eligible for the solar tax credit. If you don’t have enough tax liability for the claimed year, you can simply “roll over” the remaining credits into the following years for as long as the tax credit is in effect.
You claim the ITC when you file your federal tax return. Let your CPA know that you’ve gone solar and they will assist you with your credit.
