Solar Tax Credit: A Major Reason Why You Should Go Solar
Everyone gets nervous when there comes a time to pay the electricity bills. The power rates are soaring sky high these days and the continuous depletion of resources makes it a horrible contraption that the people can get out of.
Well, lucky for us, the government has decided to promote the use of solar energy by extending the tax credit incentive for residential homeowners and commercial businesses who opt for solar energy in 2021 across the United States.
A cleaner means of generating power has become a necessity to protect the environment. Which is why the government has decided to promote the use of solar energy by extending the tax credit incentive.
The policy was originally set to expire in 2021, but – in a bid to promote the use of clean and green energy – the government extended the financial incentive so that more people could opt for solar energy. Here’s what the tax credit incentive entails:
What is Solar Tax Credit?
The federal solar investment tax credit (ITC) is an incentive that makes the solar energy systems more affordable for the people who wish to opt for solar. The federal income taxes for 26 percent of the cost of a solar photovoltaic (PV) system and battery storage can be claimed from the government, which implies that the government will deduct 26% of the cost from the expenses of your solar panel installation.
Is this Incentive Here to Stay?
All solar projects that enter construction in 2021 and 2022 shall be able to avail the 26 percent tax credit. The incentive goes down to 22 percent in 2023, and from the start of 2024 and onwards it would become 0 percent for homeowners whereas for the businesses, the tax credit shall drop to 10 percent.
Who can avail ITC?
To be eligible for the ITC, one must fulfill the following criteria:
- In order for you to avail the full 26 percent of tax credit, you must have the solar energy system in place and functional before the end of 2021. Otherwise, you shall fall in the subsequent net of tax credits.
- Your system should be located within the borders of the United States.
- The system must have been purchased in your own name.
- Your solar panel system must be brand new. The tax credit cannot be availed on a used system.
The government is actively encouraging the people to opt for solar and derive benefit not only for themselves but for the society at large. In order to do the smart deed, get in touch with Perfect Solar Home now to start saving money as well as the environment around you.