The Solar Investment Tax Credit, or ITC, is an important tool to help make solar energy more affordable across the United States. But there are changes looming for the ITC which homeowners and businesses need to know before investing in solar.
Facts About the ITC, and How It Works
The ITC was first introduced in 2006 and since that time has led to 10,000% growth in the nation’s solar industry. Thousands of jobs have been created due to the ITC and billions of dollars have been invested into this growing field.
The ITC is a federal tax credit claimed against the tax liability of residents or businesses which install, develop, or finance solar projects.
In 2019, the ITC reimbursed solar customers 30% of their investment for projects that started construction in the specified calendar year. But that credit will decrease, beginning this year.
Starting in 2020, the ITC credit will be 26%; in 2021 it will decrease to 22%. By 2022, the ITC credit for commercial installations will be 10% while homeowners will receive no tax credit.
Take Advantage Today
Due to the sunset schedule for the federal ITC program, homeowners and businesses alike should prioritize solar investments.
Taking advantage of this federal tax incentive can help reduce your overall financial burden to install a new solar power system and help reduce energy costs sooner.
Don’t wait to install a new solar power system. Contact Sunrise Solar today and we can help you understand the tax implications of your solar installation.