Solar energy is becoming more popular every year. More and more people are making the switch to solar power, and for good reason! Solar energy is a renewable resource, meaning that it can be used repeatedly to save you money. It is also environmentally friendly, which is important to climate change.
What is also great is that if you go solar there are tax benefits! Let’s talk about the Solar Investment Tax Credit in 2022.
What Is the Solar Investment Tax Credit?
The federal solar investment tax credit (ITC) can be a great incentive for homeowners who want to go green and save money in the process. This 26% tax credit can be claimed by paying for your solar system yourself — as long as there was some form of payment made in that particular year!
We recommend that if possible, an outright purchase is best for the future value and equity of the panels in your home because leasing could make it more difficult to sell.
The IRS has specified that solar battery installations for which all solar energy generated can be stored are also eligible for the full tax credit.
When Does Solar ICT Finish?
The federal solar tax ITC is set to expire at the end of 2023. There’s hope that this vital incentive may be extended once again, but there are no guarantees it will pass Congress.
That is why it is a good idea to go solar in 2022 to ensure you can get the current 26% solar energy credit. As soon as possible, add panels so you can get your credit and start saving on your electricity bill!
Benefits of Solar ITC
There are many benefits to the solar ITC. It saves you money and it benefits the environment by not emitting harmful gases.
The government is pushing this incentive due to the ever-growing climate change, so it is best to take advantage of the tax credit while you still can. Solar energy may be more expensive in the future, so it is important to act now!
When Do You Get Your Reduction?
The solar ITC is a long-term reduction in taxes, not an immediate discount. You must first pay for your solar energy system and then claim it during tax season. Consider using a CPA to help with the paperwork.
Installing Solar Panels
Solar panels typically last for around 25 years, so you will be getting a lot of use out of them.
The process of installing solar panels is quick and easy. Solar installers will come to your house and install them for you in a matter of days. You can also do it yourself, but we highly recommend that you let the professionals take care of it! Especially when you have access to the pros at Aztec Solar.
All you need to make sure is that you have the correct amount of space on your roof to install the panels at the right angle. Solar energy can be used anywhere, so you don’t have to worry about not having enough sun! We can walk you through how many panels your roof will allow.
Even during the winter months, solar panels are a great idea! Solar energy also can be stored in a battery, so you can still use it during the colder months or during a power outage.
Is the Solar ITC available to everyone?
No, only those who own their solar panels are eligible for the solar ITC. However, business owners can take advantage of the Business Energy Investment Tax credit!
When will the Solar ITC expire?
The solar ITC for residential properties expires at the end of 2023. Make sure to take advantage of it while you still can!
Can I claim both the Solar ITC and Residential Energy Property tax credit?
Yes, you can! The solar ITC is available to those who own their solar panels, while the Residential Energy Property tax credit applies to renters and homeowners alike.
The federal solar ITC is a government incentive that helps offset the initial cost of installing photovoltaic panels on your property. It’s an investment in renewable energy and, as such, could pay off big time for you over the long term. If this sounds like something you want to explore further, or if you’re just curious about whether it might be worth looking into, we encourage you to think about this long-term investment and to contact us today!
Solar energy is the future, so don’t wait too long!