[REDDING, CA, July 26, 2018—] Solar consumers are eligible for federal tax incentives for the purchase and installation of eligible solar systems, including both solar photovoltaics (PV) and solar hot water (solar thermal) systems. The tax credit has helped thousands of homeowners go solar and save huge amounts on their power bill, but it’s now in jeopardy.
For now, the tax credit is still in place through 2019. The current head of the EPA is against the tax credits, and the administration is looking to find ways to pay for its tax cuts, it’s possible that the solar tax credit might be on the chopping block.
What is the solar tax credit?
The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value. Thanks to the ITC, the average Solar Solutions customer saved over $5,000 on the cost of going solar in 2017.
For 2018 and 2019, the tax credit is still in place at 30%, then step down to zero after 2022.
How does the Solar Tax Credit Work?
If you’re a homeowner who buys a solar panel system, you’re entitled to a tax credit of up to 30% of the total cost of that system. You can wipe out your entire tax bill if your credit is high enough, and you can take the credit over multiple years if you don’t owe that much in year 1. For example, if you spend $20,000 on a solar system, your 30% tax credit would be $6,000. But if you only owe $4,600 in taxes for 2018, your tax bill will be reduced to zero, and you’ll receive an additional $1,400 tax credit on your 2019 return.
It’s important for everyone to know how the tax credit can help them, and what they can expect if it goes away. If you have questions about going solar and you want to know how the solar tax credit can benefit you, contact Solar Solutions at 530-364-2457 or visit our website at http://solarsolutionsredding.com.
Solar Solutions is a locally owned company based in Redding, CA proudly serving solar installation to the California north state. We specialize in effectively eliminating your utility bill (or coming very close!), leaving you with a consistent and in many cases lower payment for your solar system each month.
If you would like more information about this topic, please call Paul Jacobs at 530- or email email@example.com