What is the Federal Solar Tax Credit?
There has never been a better time to go solar than now! Not only has installation and material costs come way down but you can still take advantage of the Federal Solar Tax Credit! When is the best time to take advantage of this amazing credit? Right Now! If you purchase a new Solar Panel System in 2022 through 2032, you are eligible for a 30% Solar Tax Credit. Make this year the one where you benefit from this exclusive IRS tax credit by getting solar for your home.
How does the Tax Credit Work?
The Solar Tax Credit lowers your Federal Taxes, if you owed $25,000 for a new Solar Panel System you would see a tax credit of $7,500. If you don't use all of the Solar Tax Credit in the year you purchased the Solar Panels, you can simply roll over the remainder of the Solar Tax Credit to the following year. The tax credit is available on both primary and secondary residences. However, if you are a tenant-stakeholder or live in a Co-op, you can only claim your portion of the Solar Tax Credit.
More good news is that as it is written, if your state allows you to take advantage of a State Solar Tax Credit, there is no reduction to the Federal Tax Credit. You can also still use the Federal Solar Tax Credit even if you're already taking advantage of another Federal Energy Tax Credit. As a bonus, you can now claim the Nonbusiness Energy Property Credit every year through 2032. Previously this credit maxed out at a lifetime limit.