30% Off Solar Systems Now
Yes you read this correctly. The Federal Government is offering a 30% tax credit for the installation of both residential and corporate solar systems.
Solar Financial Incentives
In addition, we can help you find additional incentive programs on Solar
Power Systems installations through several other
programs on the state and local level.
FEDERAL TAX CREDITS AND ACCELERATED DEPRECIATION
A 30 PERCENT FEDERAL TAX CREDIT IS OFFERED FOR THE
INSTALLATION OF BOTH RESIDENTIAL AND CORPORATE SOLAR ENERGY SYSTEMS. THE
TAX CREDIT IS APPLIED TO THE NET COST AFTER OTHER REBATES OR GRANTS
HAVE REDUCED THE INITIAL SYSTEM COST. THE CURRENT FEDERAL TAX CREDIT
PROGRAM IS AVAILABLE THROUGH 2019.
Note that we don't know how long this program will last.
The Investment Tax Credit (ITC) is currently a 30 percent federal tax credit claimed against the tax liability of residential (Section 25D) and commercial and utility (Section 48) investors in solar energy property. The Section 25D residential ITC allows the homeowner to apply the credit to his/her personal income taxes. This credit is used when homeowners purchase solar systems outright and have them installed on their homes. In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit.
Here’s how the Solar Investment Tax Credit (ITC) actually works?
A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. Both the residential and commercial ITC are equal to 30 percent of the basis that is invested in eligible property which have commence construction through 2019. The ITC then steps down to 26 percent for projects that begin construction in 2020 and 22 percent for projects that begin in 2021. After 2021, the residential credit will drop to zero while the commercial and utility credit will drop to a permanent 10 percent.
Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation.
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover renewable energy investments through depreciation deductions. For more information visit the US Department of Energy’s DSIRE website.