Tax Credits That Can Help You Get Solar Panels

Written by  //  August 4, 2022  //  Solar Energy  //  Comments Off on Tax Credits That Can Help You Get Solar Panels

Tax Credits That Can Help You Get Solar Panels

In the process of building your dream home, you’ve probably run into a lot of unforeseen expenses. Building a home is always more expensive than people think it will be. Luckily, there are ways to save money on specific aspects of your home, such as solar panels.

Solar panels will make your home eco-friendlier since it won’t depend on fossil fuels for energy. Plus, they’ll save you money since you won’t have to pay an energy company. Unfortunately, you may find that they’re expensive to install. Luckily, there are some tax credits that can help you get solar panels. Keep reading to learn which ones you can take advantage of.

Federal Solar Tax Credit

Perhaps the most important tax credit you should know about is the federal solar tax credit, the Investment Tax Credit (ITC). The government started offering this tax credit in 2006, and it will expire in 2024. However, there’s a chance that Congress will renew it. Regardless of whether they renew it, you still have two years left to install solar panels and receive this credit. If you do so before the end of 2022, you’ll receive a 26 percent tax credit, and if you do so in 2023, you’ll receive a 22 percent tax credit.

For those who already installed solar panels in their home but didn’t receive a tax credit at the time, there are still options for you. You could receive a 26 percent tax credit if you installed your system between 2020 and this year. If you installed solar panels earlier than that, but after Congress enacted the tax credit in 2006, you can receive a 30 percent credit.

State Solar Tax Credits

You can apply for both federal solar tax credits and state solar tax credits at the same time. These credits shouldn’t interfere with each other, and most people can claim both on their taxes. While all states offer some form of policies and incentives, each state offers something different. For example, Illinois offers property tax exemption and has a solar program for low-income communities.

Meanwhile, Indiana offers an energy efficiency rebate program in specific counties. Consult the Database of State Incentives for Renewables and Efficiency to learn the specific policies and incentives for your state.

Additional Options

Counties, cities, and local companies may also offer their own additional financial savings for those installing or using solar power. If you are installing or have recently installed solar panels, you can check the database and call your power company to find out what additional options are available. While these localized options probably can’t provide tax credits, they can still help you save money as you build your home and make it eco-friendly.

Federal and state governments offer tax credits that can help you get solar panels for your home. You can also find additional local benefits with your county, city, and power company. These savings will help you keep more money in your pocket as you build your eco-friendly home.

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