The installation of a solar energy system is encouraged by the federal government’s solar Investment Tax Credit (ITC).
The purchase of a solar energy system qualifies the purchaser to be allowed as a federal tax credit equal to the sum of thirty percent (30%) of the qualified solar electric system costs paid by the taxpayer. Simply stated, you’ll likely be eligible to receive a check for 30% off your total system costs in 2022! But be forewarned that the ITC will be phasing out over the next two years, so call us today. Find out more here.
In the example, if your solar PV system costs total of $20,000, you’ll receive $5,200 back at tax time! That’s $14,800 out of pocket costs before considering other investment gains such as the increased property value.
While each person’s tax situation is different, we recommend you discuss your eligibility for the ITC with your tax professional.