Why Now is the time to Invest in Solar Power to Get the Best Solar Panel Tax Credit
These days buying solar panels is more affordable than ever before. But there are always windows of opportunity that open up to make solar panel cost even lower so that virtually any household or business could afford to instal a cost-saving solar system.
The Investment Tax Credit (ITC), also known as the Federal Solar Tax Credit has helped to reduce costs significantly. According to many predictions, the savings in 2019 will remain down so that buyers save a substantial 30%. However, once 2019 ends, the savings will drop down to 26%, making now the perfect time to buy solar panels from a top solar panel company that helps clients qualify for tax credits and other programs making their overall investment minimal.
How (and Why) did the ITC Solar Panel Tax Credit Start?
The Investment Tax Credit was originally established by the Energy Policy Act of 2005 with an expiration date of 2007. Due to its popularity and its support in helping the US transition to an economy grounded on renewable energy, Congress has extended its expiration date numerous times. Currently, the ITC Tax credit is up for grabs through to 2021, but the exact savings will likely change and various forms of the tax credit could roll out and become the standardized model.
According to Energy Sage, the ITC Tax Credit projected view is as follows:
2016 – 2019: The ITC tax credit remains at 30 percent of the cost of the solar system.
2020: Owners of new residential and commercial solar panels can deduct 26 percent of the total cost of the solar system from their taxes.
2021: Owners of new residential and commercial solar panel systems can deduct 22 percent of the total cost of the solar panel system from their taxes.
2022 onwards: Owners of new commercial solar panel systems can deduct 10 percent of the cost of the solar panels from their taxes. Furthermore, there is no federal credit for residential solar panel systems.
As you can see, time is of the essence, and the sooner you invest, the more money you save on the overall cost of your solar panels. Furthermore, be aware that in the past, people who purchased new solar panel energy systems could not claim the tax credit unless their solar panels were fully installed and operational. But new legislation now allows homeowners to claim the ITC tax credit the second construction of the solar system begins, as long as the solar panels will be operational by December 31, 2023.
Partner with Solar Panel Companies Experienced in the ITX Tax Credit
The best solar panel companies will work with their clients to apply for and qualify for the ITC credit, as well as additional state credits, and any other cost-saving programs that might exist within certain states, counties and cities. The best solar panel companies know how to navigate the process and even duck under any red tape that might surface. Companies like Solar Optimum have been providing homes and businesses with affordable solar panel systems for more than a decade, and helping customers qualify for programs and credits that make their solar system even more affordable just goes with the nature of our business!