One of the main obstacles faced by those who want to enjoy the benefits derived from solar energy is not having the capital that is required to pay for the installation of the necessary equipment. As a way to lower the costs of solar energy, the United States Congress approved extending the Solar Investment Tax Credit (ITC) for two more years, giving a boost to homeowners who plan to start using it. self-sustaining form of energy. If you want to purchase a solar system for your home, at 1 Stop Solar , a local Florida company, you will find the best solar panels for houses and the advice of qualified personnel.
A Good Way To Encourage The Use Of Solar Energy
The federal solar investment tax credit (ITC) allows owners of residential, commercial and utility solar projects to obtain a credit on a percentage of the total cost of the installed solar system. Initially, the ITC was scheduled to deduct 26% in 2020, 22% in 2021 and be eliminated in 2022. With the extension approved by Congress, the credit will remain at 26% for two more years ( 2021 and 2022), in the year 2023 22% can be deducted and unless it is renewed again, it will be eliminated in 2024.
This means that projects starting in 2021 will have a 4-year period to assert the credit and, during 2021 and 2022, homeowners who purchase a solar energy system may be eligible for a 26% credit on the total cost of the installed system that can be applied to your tax debt.
How Does Credit Work To Reduce The Cost Of Solar Energy?
These are the details to know if you decide to opt for a tax credit to install your solar energy system:
- The tax credit works dollar for dollar and can be applied to the income taxes owed, in this way the user can offset their tax debt with the credit.
- Generally, only homeowners who purchase their solar generating equipment are eligible for the credit; people who rent solar equipment or who use a solar power purchase contract do not qualify for the credit.
- The expenses included in the ITC include the solar panels and equipment used for their installation, labor costs, permit fees and inspection costs.
- The ITC is claimed in the annual federal tax return, but not all buying customers are eligible, it is advisable to consult with a tax advisor to evaluate each particular case.
In short, acquiring solar panels for houses and starting to enjoy solar energy in your home is more accessible with the use of a tax credit.
If you plan to use a tax credit to lower the costs of installing a solar system in your residence and reduce the cost of solar energy for your home, do not hesitate to go to the specialists. At 1 Stop Solar , a local Florida business, you will receive personalized attention and get the best solar panels for homes. Call today.