What is the solar tax credit?
The federal investment tax credit (ITC) allows homeowners to deduct 30 percent of the cost of solar panel installation from their federal taxes. Homeowners have until 2019 to claim the full 30% benefit of the federal ITC. After that, the savings will decrease every year until they disappear completely. By 2022, Homeowners that install solar panels cannot claim any deductions on their taxes. The federal ITC does not apply to homeowners that lease their solar panels or people that rent their homes. Let’s say your home requires a system that costs roughly $25,000. That means you’ll receive a $7,500 deduction on your federal taxes. If you don’t owe as much in taxes at the end of the year as 30% of the cost of your system and can’t claim the $7,500 tax credit in one year, then you can roll-over any remaining credits into future years to ensure you get the full tax deduction.
Get a Custom Quote
Fill out the form below for a free solar consultation and to learn more about switching to solar.
*The 10% tax credit in 2022 is only available for commercial solar energy systems, not residential
Solar is a smart investment to make now not only for your monthly bill, but for your taxes as well. These monthly savings are there from the start and will only increase with time. Get a free solar quote from Skyline today! You (and your wallet) will thank us later.
find out what you could be saving.
Get a custom quote designed specifically for your home and energy consumption.
get a free quote.
We'll create a quote tailored to your home.