The Coachella Valley solar panel installation professionals at Renova Energy explain the details and limitations of the Federal Solar Tax Credit. Learn how installation of a solar power system can help you save money on taxes.
Own Your Solar Power System and Receive a Tax Credit
There are numerous benefits to installing and owning a solar energy system and earning a tax credit is a big one of those benefits. When you choose to be more energy-efficient and change the way that your household uses power, the federal government thanks you. You can earn up to a 26% tax credit when you install solar power panels and systems for your Coachella Valley home.
Contact the team at Renova Energy to discuss how installing a solar energy system will benefit your household, and how you can earn your tax credit this year.
What Is Covered in the Federal Solar Tax Credit?
The Federal Solar Tax Credit awards 26% of your total project costs as a dollar for dollar tax credit for the year of installation. You can claim several items to be included in total cost, including:
• Installations labor cost
• Tool rental or purchase
• Freight shipping charges
• Trade fees (electrician, engineer, etc.)
• Supplies for installation
• Solar Panels
• Battery storage
The tax credit also applies to upgrades to your existing system, additional battery storage, or additional panels.
Are There Any Rules to the Claim?
There are a few rules to earning the federal tax credit. You must own your system, so it cannot be leased. You must also take advantage of this tax credit before 2022. Not only will it expire in 2022 but it also will decrease each year to that point. You can earn 26% credit for 2020 and 22% for 2021, but 0% for installation after 2022.
Although the tax credit is given for the year of installation, it is still very much worth owning your system. You will generate your home's energy while also earning a “reward” from the federal government with regard to taxes.
Call our Coachella Valley team at Renova Energy for a quote today. The future of energy is in your hands.