Time’s Almost Up to Get the Same Solar Tax Credit as Michael Rock
Did you know that 2019 is your last chance to get the highest Federal Solar Tax Credit allowed? I’m glad I purchased my solar through Isaksen Solar when I did — I was able to get roughly a $22,000 tax credit for my system.
Homeowners and commercial property owners do not have much time left to go solar AND be able to deduct 30 percent off of the cost of their solar system. However, starting in 2020, the Federal Tax Credit rate (aka, the Investment Tax Credit or ITC) will drop down to just 26 percent and go down again in 2021 to only 21 percent. By 2022, the incentive for homeowners to go solar will disappear.
What these drop-down rates translate to as the homeowner is this:
- With a 30 percent Federal Solar Tax Credit, if your cost of adding solar is $25,000, you can get a one-time tax credit on $7,500 of the project.
- With a 26 percent Federal Solar Tax Credit in 2020, you can get a one-time tax credit on $6,500 of the project.
- Fast forward to 2021 and you will only get a one-time tax credit on $5,250 of the project. But that’s still better than if you wait until 2022 and get no tax credit.
Here’s how you can guarantee you’ll get the maximum federal tax credit on your solar system:
- If you’re considering solar, make sure your roof can support the panels. This means the condition of the roof is good and repairs or replacement are not needed. If a replacement is needed, you have to consider your timeline – will it get done in time to have panels installed on time to meet the 2019 deadline? Check out my list of five reasons solar may not be right for you.
- Your system needs to be installed and turned on by December 31st, 2019. This means if you wait until the last minute to pull the trigger on your install, you’re already too late. SET UP A CONSULTATION TODAY BY CALLING 508-567-0647.
- Your solar system must be fully paid for and checked out by your energy utility company in 2019. This means you must OWN your solar system. If you only lease, the tax credit goes to the leaseholder. Talk to your accountant about the IRS Form 5695 - Residential Energy Credits and your 30 percent credit.
After my family had Isaksen install a solar system on our house last year, I ended up receiving tax credit of roughly $22,000. If you've been considering solar, I'd suggest giving them a call today at 508-567-0647.