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2017 Solar Tax Savings FAQ
November 28, 2017
FOUR Questions Everyone’s Asking About the Solar Tax Credit
One of the most significant reasons people make the investment in solar is the vast financial and energy saving benefits. Sure enough, one of the most important federal incentives of switching to solar is the ITC.
What Is The ITC?
The ITC is the Federal Solar Investment Tax Credit. According to the Solar Energy Industries Association (SEIA),
The Investment Tax Credit (ITC) is currently a 30 percent federal tax credit claimed against the tax liability of residential (IRC Section 25D) and commercial and utility (IRC Section 48) investors in solar energy property. The Section 25D residential ITC allows the homeowner to apply the credit to his/her personal income taxes. This credit is used when homeowners purchase solar systems outright and have them installed on their homes. In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit.
Put simply, purchasing a solar system for your home or business can result in a 30% tax credit. This means Florida residents have the opportunity not only to save on their monthly energy bill, but also to claim a 30% deduction of the cost of their solar project on their federal taxes. Who knew those solar panels would make tax season and IRS forms just a little less intimidating?
Will There Always Be an ITC?
Although the ITC was intended to expire last year, Congress recently approved a limited-time extension. The 30% credit will remain until 2019; in 2020 it will decrease to 26%; and in 2021 to 22%. After 2023 the residential credit will be removed, while the commercial and utility credit will drop permanently to 10%.
What Does This Mean For Me?
This is all great news, because let’s face it: no one ever complained about fewer taxes. If you are a homeowner or business-owner interested in solar, it is best to take advantage of this federal tax credit soon! The possibility of policy changes on the federal level could affect the benefit of the solar investment tax credit.
In order to qualify for the ITC in 2017, residential clients must have their solar installed by December 31, 2017.
That means it’s time to call Mirasol Fafco Solar and start saving some Green!
Over the last 10 years the price of Solar Energy has come down 60%.
“Now Is the Time to take advantage of your ITC!”
Here at Mirasol Fafco Solar, we want to make sure you are installed by year-end to be eligible for your 30% ITC.
Sign with us by December 31, 2017 so we can start scheduling your solar installation!
(Please consult with your tax adviser or accountant to see if you qualify for the tax credit.)