Saving Money on Residential Solar Power through Federal Tax Credits
Filed under: Solar Installation
Many people are motivated by residential solar power because they want to decrease their carbon footprint and save money on their monthly utility bills. But, one common roadblock is the cost of the initial installation, because homeowners are worried about the money that will need to be invested to have the system installed on their home. The truth is that there are methods that can be used to off-set the cost of a solar power system installation, and you need to talk with a local company to learn more about the tax credits that are available.
Federal Tax Credits for Solar
There are federal programs that offer tax credits for solar power system installations. The 30% Federal tax credit was created to encourage and support the use of solar technology throughout the United States. This tax credit is available for both residential and commercial solar power systems and was recently extended through 2019, after which it will fall to 26% in 2020, 22% in 2021 and 10% in 2022. In order to take advantage of the Federal Tax Credit, the system must be placed in service during the tax year and generate electricity for a home located in the U.S. If the a homeowner is not able to redeem the full 30 percent tax credit in a single calendar year, the IRS allows the credit to be carried over to the following year, in order to help tax payer claim as much of the solar tax credit as possible. While most people qualify for the solar tax incentive, there are some that do not qualify. Anyone who does not have a Federal Tax Liability, will not be able to benefit from the tax credit. (Always speak to a tax professional about tax credit implications on your tax return.)
Why Are Solar Power Tax Credits Offered?
There are many people that see the advantage of renewable energy, and these tax credits are offered as a way to encourage homeowners to install these systems on their own homes. When everyone is making an effort to reduce the use of fossil fuels, then these efforts can really add up to protect the environment. But, each person must do their part, and these federal tax credits are designed to reward people for taking the right action on their home. For other details regarding the Federal Tax Credit, you can ask your solar installer. If you are interested in learning about solar power for residential or commercial buildings, then the best thing that you can do is talk with an experienced solar installation team. Contact New Day Solar for more details: (855) 444-6329
