Over the last few years, the uncertainty of how the government and utilities were going to handle tax credits for new solar systems has caused confusion to the residential marketplace. Are tax credits gone? Are we running out of time? Did I already miss the boat? Luckily, there’s now a defined answers to these questions.
In February of this year, the Bipartisan Budget Act of 2018 reinstated the tax credits available for residential solar customers. The Act outlined a structured, but gradual decrease in the credits over the next three years for systems placed in service on or after January 1, 2006, and on or before December 31, 2021. The breakdown according to Energy.gov1:
- 30% for systems placed in service by 12/31/2019
- 26% for systems placed in service after 12/31/2019 and before 01/01/2021
- 22% for systems placed in service after 12/31/2020 and before 01/01/2022
In additional to the natural reduction of your electric bills over the next 25 years, adding renewable solar energy will increase the value of your home without directly increasing the property tax assessment from the installation.
Please consult with your accountant regarding your eligibility, and how you can benefit from this tremendous tax credit