Tax incentives and solar power are always a big topic of conversation. Here’s a look at what tax incentives are available for home and business owners who install a qualifying solar system.
Federal tax credits
The federal government renewed the Federal Investment Tax Credit (ITC) for home and business owners who install a qualifying solar system. The ITC offers a 26 percent federal tax credit of project costs in 2022. However, that amount falls to 22 percent in 2023 and drops to 10 percent for business in 2024 while expiring completely for residential projects. Although Congress has expressed interest in supporting this program, there is no guarantee that ITC will be renewed after 2024. In the meantime, waiting only puts those interested in solar at risk of missing out on the maximum amount available.
State and local programs
In addition to the federal program, many state and local governments, and some utility companies, are offering programs for installing qualifying systems. These programs range from performance-based incentives to sales tax exemption on the purchase of your solar photovoltaic system. You can find a full breakdown by state here. Be aware that many of the programs available at the state and level and those available through participating utility companies may be on a first-come, first-served basis, so don’t hesitate.
What do you qualify for
Experienced and certified solar installers will be able to tell you what programs you qualify for and help you apply for those incentives promptly, ensuring that you don’t miss out on any potential savings.
To learn more about the solar installation process, contact an All Energy Solar representative.
