Take Advantage of the Solar Tax Credit
We’ve heard for a while now that the solar tax credit will be slowly reduced over the years to come. That’s why this is the perfect year for you to take advantage of the solar tax credit. Southern California homeowners will be able to take advantage of the 26% federal investment tax credit with solar systems installed in their homes.
How the Tax Credit Works
The federal solar tax credit was intended to encourage homeowners to go green and reduce Americans’ dependence on fossil fuels. Due to popular demand, the federal solar tax credit was extended to 2020 by Congress in order to extend the credit to homeowners. In California, there is a mandate that all new homes install solar panels, but older homes are not required to install solar panels. However, it’s anticipated that homeowners will rush to take advantage of the solar tax credit.
To acquire the solar tax credit, your solar installation company will offer you a receipt for the solar system’s total cost and installation process. When tax season comes around, homeowners will be able to provide this information to their tax professional including items such as storage of solar batteries.
It must be noted that in order to take advantage of the federal tax credit, homeowners have to own their own solar panel system instead of renting it from a solar company. Additionally, in order to qualify for the solar tax credit, solar batteries must be entirely charged by the solar panel system, not an outside source. These are important distinctions for homeowners seeking to make use of their tax credits for switching to clean green renewable energy.
Solar Tax Credit Eligibility Broken Down
As mentioned previously, there are a few conditions in order to make use of the 2020 federal tax credit:
- Homeowners MUST own their own solar panel system and batteries in order to be eligible
- Batteries must be fully charged from solar panels, not other sources
- You must be a homeowner, not a renter of a property
- Your solar panel system needs to be installed before the end of 2020
The Time to Act Is Now
Before the solar tax credit begins to diminish significantly and disappear completely by 2022, it’s time for you to act and install solar panels. Go green and begin earning credits instead of paying major electricity bills. Don’t wait to collect on your 2020 solar tax credit. Call SunPro Solar today at 951-678-7733 to schedule a consultation with an experienced solar installation expert today and begin generating clean green renewable energy that will save you money in the long run.