Federal Solar Tax Credit is Extended!

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The Federal Solar Tax Credit, also known as the solar Investment Tax Credit (ITC), is responsible for growing the United States’ solar industry over 10,000 percent since its enactment in 2006, according to Forbes. The original plan was to make it available for two years. However, after how many people switched to solar energy, the government continued reenacting it.

After almost two decades of encouraging solar energy, ITC would cease to exist after 2024. That was until the government recently extended its end date.

Contact Stada Energy to learn more about the ITC!

Coachella Valley Solar Energy Can Save You Money for Longer

Coachella Valley solar energy can save you money for at least 12 more years because President Biden signed the Inflation Reduction Act in August 2022. The highlight of this act is it expanded the ITC. Before the president signed this bill, solar energy credits could no longer be claimed on federal income taxes after 2024.

Fortunately, that’s no longer the case. Switching to solar energy in the Coachella Valley makes you eligible to claim a percentage of your system’s cost.

How the Federal Solar Tax Credit Promotes Clean Energy

ITC growing the solar industry more than 10,000 percent since 2006 is no accident. The bill incentivizes residential and commercial property owners to go solar because it can provide significant savings:

  • Installing a solar energy system in Coachella Valley between this year and 2032 would earn you a 30 percent tax credit. Before President Biden signed the Inflation Reduction Act, 2022’s tax credit was 22 percent. If you installed your solar energy system this year but have yet to claim your tax credit, you’re eligible for the 30 percent figure.
  • In 2033, the tax credit reduces to 26 percent, and in 2034, 22 percent.
  • Savings on the cost of an average residential solar energy system installation can be more than $7,500.
  • When more Americans go solar, millions of families can, on average, save $9,000 on electricity bills, according to Energy.gov.

Extending ITC helps you use clean energy and saves you and fellow Americans money for years!

How to Claim the Federal Solar Tax Credit

As long as you own your solar energy system and confirm your eligibility, you’ll fill out and attach IRS Form 5695 to your Form 1040, also known as your federal tax return.

The International Revenue Service or tax professionals, like a certified public accountant, can answer questions you have about eligibility and claiming tax credits.

Go Solar Now, Save Money for Years to Come

ITC’s extension helps you keep your money where it belongs: your pocket! Stada Energy’s Coachella Valley solar experts are ready to install a solar energy system at your residential or commercial property so you can begin saving. Using clean energy has never felt or paid this good!

Contact us today so you can start saving money with a new solar energy system!