In December, the government signed a bill to extend the Solar Tax Credit, this time, with different amendments. Here is what you need to know.
What is the Solar Investment Tax Credit?
The Solar Investment Tax Credit is a 30 percent tax credit you can earn in the year that your solar panels are installed. It has been in place for several years and was set to expire in January 2016. In December 2015, the bill was extended, now with a gradual stepdown in future years.
When will the credit expire?
That’s the exciting news! You can earn 30 percent back until December 2019! After that, there will be a gradual decrease until the credit switches to 10 percent back in future years. Here’s a quick breakdown of the decrease:
When should I have my system installed?
Though the credit was extended, you’ll want to have your system installed as soon as possible so you can be sure to get the most out of your tax credit. You’ll want to make sure you get your 30 percent tax credit before the tax credit begins to decrease. Any unused credits roll over into the next year, so you will want to take advantage of your credit sooner rather than later!
If you’d like to learn more about the extension, visit http://energy.gov/savings/business-energy-investment-tax-credit-itc
If you’re ready to take advantage of this exciting extension, give us a call today at 916.853.2700.