When it comes to making the decision to go solar, there are a variety of factors you must take into consideration, including how it can impact your tax return! Let’s be honest, we all love a great tax credit, and solar can deliver just that!
According to a variety of sources, the federal solar tax credit, commonly referred to as the investment tax credit or ITC, is at a solid 26% and will remain available for residential and commercial solar systems installed by December 31, 2020. This means that new solar owners, of both residential and commercial solar, can deduct 26% of the cost of their solar system from their taxes.
Understanding Solar Tax Credit and How It Works
If you own a solar panel system, residential or commercial, you hold eligibility for the solar investment tax credit. Additionally, solar panel system owners can roll over remaining credits into future years as long as the tax credit is in effect. So, even if you do not have enough tax liability to claim all the credit in 2020, you can take advantage of the solar tax credit in the future. Of course, you are only eligible for the solar tax credit if you own the system and not if you have signed a lease or PPA with a solar installation company.
How to Claim Your Investment Tax Credit After Solar is Installed
After your Coachella Valley residential or commercial solar system is installed, you can claim the investment tax credit. You will, of course, do this when you file your yearly federal tax return. If you use an accountant when filing your taxes, it is crucial you let your tax accountant know of your recent solar system purchase. If you file your own taxes, be sure to research how to claim the solar investment tax credit.
Let Stada Energy Help You Save Big and Get a Bigger Return!
Our Coachella Valley solar experts can help you navigate any concerns or questions you may have before, during, and after you switch to solar. At Stada Energy, we want you to save big and enjoy all the benefits of converting to solar, including reaping the benefits of an awesome tax return. Don’t wait another minute to get your questions answered—let us help today!
Ready to speak to a solar specialist in the Coachella Valley? Call Stada Energy today and join the family that puts your priorities first!