What You Need to Know About the Federal Solar Tax Credit

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If you’re considering a solar PV system, continue reading to learn how you can see up to 30% back on your federal taxes.

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In 2019, the United States government started offering reductions on federal income taxes to those installing residential solar systems.

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The incentive was set to end in 2022 but was extended for another 10 years in August. Anyone installing a solar array until 2032 might be eligible for 30% of their installation as credit.

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To qualify for a 30% credit, customers must have their system installed between January 1, 2017, and December 31, 2032.

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Customers can receive credits on several aspects, including: – Solar PV panels and cells – Contractor labor costs, such as preparation, assembly, and installation

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– Energy storage devices such as lithium-ion batteries (storage devices installed after December 31, 2022, must have a capacity of 3kWh or more to qualify) – Sales tax on expenses

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Depending on location, several rebates exist for equipment. Many utility companies will offer subsidies for connecting an array to the municipal power grid.

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What You Need to Know About the Federal Solar Tax Credit

If you’re considering a solar PV system, continue reading to learn how you can see up to 30% back on your federal taxes.

In 2019, the United States government started offering reductions on federal income taxes to those installing residential solar systems.

What is the Federal Solar Tax Credit?

The incentive was set to end in 2022 but was extended for another 10 years in August. Anyone installing a solar array until 2032 might be eligible for 30% of their installation as credit.

To qualify for a 30% credit, customers must have their system installed between January 1, 2017, and December 31, 2032.

Federal Solar Tax Credit Eligibility Requirements

Customers can receive credits on several aspects, including: – Solar PV panels and cells – Contractor labor costs, such as preparation, assembly, and installation

Solar Expenses are Included in the Federal Solar Tax Credit

– Energy storage devices such as lithium-ion batteries (storage devices installed after December 31, 2022, must have a capacity of 3kWh or more to qualify) – Sales tax on expenses

Depending on location, several rebates exist for equipment. Many utility companies will offer subsidies for connecting an array to the municipal power grid.

Other Solar Incentives

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