This year’s wave of tax filers included many who purchased solar energy systems in 2018 and are now claiming the federal infrastructure tax credit (ITC) for 30 percent of the installation cost. But there are fewer than eight months left for those who haven’t yet gone solar to complete an installation in time to claim the full credit, which Congress declined to extend, on next year’s tax returns.
“The investment tax credit (ITC) has been a great incentive over the last 14 years, because it has made the switch to clean solar power affordable everywhere—in private homes, commercial properties, and even farms,” said Michael Allen, president and co-owner of solar installation company All Energy Solar. “This is truly a case where everyone wins. It’s in the government’s best interest to decrease our dependence on foreign fuel and minimize our use of energy sources that contribute to global warming. It’s in the best interest of utility companies to source their power from renewables and take strain off our aging grid. And it’s in the best interest of consumers to save money on their utility bills, increase the resale value of their properties, and minimize their personal carbon footprints.”
“We install solar power systems in six states, with customers in both the Midwest and on the east coast, and the ITC has returned thousands of dollars per project,” said Allen. “It even allowed customers with minimal tax liabilities in one year to use the credit in the following year when their tax liability was greater, so they could get back that entire 30 percent of installation cost amount. People who go solar in 2020 will only be able to get a 26 percent credit, those who wait until 2021 will qualify for even less, and by 2022, residential properties will no longer get any credit at all. It’s not worth waiting—and since it takes time for a potential solar site to be evaluated, have a system designed for it, and have that system installed, we encourage people to reach out and schedule an initial site visit with a solar installer as soon as possible. Most solar installers do that step for free, so there’s no reason to hesitate.”
All Energy Solar | http://www.allenergysolar.com