The Federal Solar Investment Tax Credit (ITC) decreased from 30 percent to 26 percent on Jan. 1 after Congress opted not to extend it.

So, what does this mean to you, the residential or commercial solar buyer? It means that through Dec. 31, 2020, you can get a 26 percent tax credit if you go solar this year.

Originally passed in 2005, the ITC has helped countless people in the Sacramento region and across the country gain the benefits of solar energy, by decreasing their electricity bill and helping the environment. Up until the end of 2019, the credit had been 30 percent. It will only decrease further after this year.

In 2021, it will drop to 22 percent and in 2022, residential solar customers will no longer get credit, but commercial solar customers will still get a 10 percent credit.

What this means is if you are looking to get solar added to your home, you have two years to do so if you would like to get a federal tax credit.

If you are unfamiliar with the ITC, here is how it works: If you purchase a solar system and you own it, you can get a tax credit. You can get your credit when you file your federal taxes. If you use an accountant just make sure you let them know you purchased solar and have the ability to show proof of purchase.

And if you need help with any solar energy needs, don’t hesitate to reach out to us. We have more than 40 years of experience in solar and only solar in the Sacramento region.

If you do business with us, you will witness our top-notch customer service, our knowledgeable installers and premium products.

If you have any questions, give us a call at 916.853.2700.

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