Did The Solar Tax Credit Get Extended?
The investment tax credit (ITC), also known as the federal solar tax credit rather than expiring at the end of 2020 as it would have under existing law, just got a reprieve from Congress. This is welcome news because the tax credits were actually scheduled to drop from 26% to 22% in 2021. But instead, the solar tax credit gets extended at 26% for two additional years. This happened as part of the $1.4 trillion federal spending package alongside a $900 billion COVID-19 virus relief spending bill.
We hear from many homeowners who have been on the fence about going solar. Seeing the solar tax credit get extended should be great news for them. Smart homeowners know installing solar is an opportunity to reduce dependence on utility providers and save on monthly electric bills.
The solar tax credit allows you to deduct 26% of the cost of installing home solar from your federal taxes. As part of the extension, homeowners will continue to receive the current 26 percent credit for home solar projects that begin construction through the end of 2022. After that, the solar tax credit will fall to a 22 percent rate for projects that beginning construction by the end of 2023.
What Qualifies For The Solar Tax Credit
For homeowners to qualify for the federal solar tax credit, they must the following requirements:
- You must own your home (no renters).
- Your Federal Tax liability must be sufficient to qualify for the 26% tax credit
- You must own your solar panels
The federal solar tax credit will disappear completely by 2024. Before it does it’s time to finally make the call and install home solar. All homeowners who have been putting it off just got an extension, so don’t wait any longer. Call or text us today at 951-678-7733 to schedule a consultation with an experienced Energy Expert today and begin saving money on your electric bills and use this huge tax credit to your advantage.