One of the major benefits that installing solar power has for your home or business is the multiple tax credits and other governments incentives that are available.
Sunrise Solar is experienced working through the required paperwork in order to take advantage of these economic incentives at the local, state, and federal levels.
At the federal level, the federal solar tax credit or investment tax credit (ITC) allows you to deduct 30 percent of the total cost of installing a solar power system from your federal taxes. The ITC applies to solar power systems installed on homes or for businesses.
There also is no cap on the value of the system.
The ITC remains at 30 percent for 2019 but will be reduced moving forward, due to previous acts of Congress. In 2020 the deduction dips to 26 percent and 22 percent in the following year. By 2022 though there will be no federal credit for residential systems, only commercial ones. But the deduction will only be 10 percent of the system.
The ITC incentive can be claimed on your federal tax return as long as you own the solar power system. Even if you don’t have enough tax liability to claim the entire credit, you can roll over the remaining credits into the future (for as long as the credit exists).
You cannot claim this tax credit for solar energy if you have signed a lease or PPA with a solar installer.
Sunrise Solar can help determine which federal, state, and local incentives exist when you decide to install a solar power system for your house or business. Contact us today to get started!