How Do You Get The Federal Rebate On Solar Panels

The federal solar tax credit also known as the investment tax credit itc allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes.

How do you get the federal rebate on solar panels.

If you spend 10 000 on your system you owe 2 600 less in taxes the following year. The solar tax credit expires in 2022. The federal government provides a solar tax credit known as the investment tax credit itc that allow homeowners and businesses to deduct a portion of their solar costs from their taxes. After that the percentage steps down each year and then stops at the end of 2021.

If say your federal taxes are 6 000 for 2020 and you re eligible for a 7 000 tax credit for installing a solar system at your house you can claim the leftover 1 000 as a credit toward your. Credits for approved solar installations installing alternative energy equipment in your home can qualify you for a credit equal to 30 of your total cost. A brief overview when you install a solar system 26 of your total project costs including equipment permitting and installation can be claimed as a credit on your federal tax return. The itc applies to both residential and commercial systems and there is no cap on its value.

The full credit is available through the end of 2019. The federal solar tax credit also known as the solar investment tax credit or itc is the single most important solar incentive available in the united states.