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3 Ways to Make Sure You Get Your Solar Tax Credit!
Solar is here to stay, so make sure you get your solar tax credit!. American families, businesses and communities are all going solar because it saves them money while adding predictability during these difficult economic times. In addition, the benefits of cutting electricity costs can help small-business owners stay afloat and school direct funds towards teacher salaries or classroom upgrades!
Solar power is a vital part of our communities, and the Solar Investment Tax Credit (ITC) helps make these savings possible. This year, homeowners can deduct 26% from their federal taxes if they invest in an installation that utilizes clean, renewable energy sources like wind or hydropower!
The pandemic has left many Americans without power. Still, as solar energy becomes more popular with each passing day due to its affordability and convenience factors- it remains an attractive option for those who need clean, renewable sources of electricity during this time. The best way you can take advantage? Install a system before December 31st, so your household qualifies under one or both tax credits currently available!
Here are some essential things to keep in mind if you want the tax credit at 26%.
If you need more information on this topic, it’s best to contact a tax lawyer.
The Owners of the Home Get the Credit!
The solar panels you buy should be yours, not someone else’s. This is because the tax credit goes only to people who own their systems- if it’s leasing or getting installed through a contract/arrangement like a PPA, then there will never be any financial benefit for us as private individuals installing our equipment. At home!
‘Commence Construction’ is Important to Receive your Tax Credit
The IRS recently released new guidance that could allow you to save money on your taxes this year. The rule will enable businesses that begin construction of a project starting in 2020 and complete it before January 1st of the following calendar year (2024) to lock in an ITC rate at 26%. However, residential solar customers are not eligible for these benefits as they don’t fit into one specific category, which includes “solar” under energy production/DER codes.
Don’t Forget to Plug It In!
The IRS says that to receive the 26% residential solar tax credit, you must be “placed into service” by December 31st, 2020. This term is still vague, though, and there isn’t a bright line test for what constitutes being placed into service, but one way of knowing that your installation has been completed would happen if at any point during construction or afterward when connected with power sources such as electricity; this includes off-grid systems too!
The ITC has helped solar deployment grow by more than 10,000% and is a proven job creator. This company can help us rebuild better as we continue to uplift American communities hardest hit by the pandemic for them not to have entirely missed out on this economic opportunity that clean energy presents.
We cannot do this without the ITC. The residential solar tax credit, which helps save money for families in America by offsetting their electricity costs through reduced taxes on renewable energy suppliers like wind and solar power systems installed at home or businesses’ offices, comes on December 31st, 2021; if Congress doesn’t act soon enough! We need to be smart about the budget and spend wisely.
The economy may not yet have stabilized, but it’s still vital that we keep our families safe by ensuring they have all their needs met. This summer is going to be tough no matter what! But with the right backup plan, you can keep your home safe and comfortable. For more protection, consider installing an alternative for electricity needs like solar panels. Contact Glyde Solar for a free solar consultation today!
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