Take Advantage of the Solar Tax Credit
We’ve all heard for a while that the solar credit will slowly be reduced over the years. That’s why this is the perfect year for you to take advantage of the solar tax credit. Southern California homeowners who go solar in 2020 are still able to claim the 26% federal investment tax credit.
How the Tax Credit Works
To further reduce dependence on fossil fuels, the credit’s intention was to encourage Americans to go solar. All homeowners got a second chance at solar when Congress extended the federal solar tax credit to 2020. The state of California has mandated all new homes to install solar panels. Although older homes are not required to install solar panels, it’s anticipated homeowners will rush to take advantage of the solar tax credit.
Your solar installation contractor will provide a receipt for the system’s total cost, including installation. When tax season comes around, you will give this information to your tax professional. This also includes the purchase of items such as solar batteries.
In order to take advantage of the federal tax credit, you have to own your solar panels instead of renting them 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
- Solar panels must be the only charging source for your batteries.
- You must be a homeowner, not a renter of a property
- The home solar 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.
