Are You Qualified for The Solar Panel Tax Credit?
by Cody McGowan, on Jun 24, 2020 7:56:00 AM
Save the Money You Deserve for Your Peoria, IL Home
Have you been debating whether or not to ‘go solar’? Or are you ready to make the leap? Besides helping the environment and saving on utility bills, there’s another massive advantage to solar panels: the solar tax credit. Like any other tax credit, when you file your taxes next year, you’ll be able to subtract the amount from any taxes owed.
But how much can you deduct, and what makes you qualify? To see how the solar panel tax credit will help your Peoria, IL, household, learn more below.
How Much Will I Earn?
The federal government created the Investment Tax Credit (ITC) as an incentive to encourage homeowners to help put solar energy on the grid. Currently, you’ll be able to deduct 26 percent of the cost of your solar installation from your taxes. So, let’s say your installation costs $14,000. You would then deduct $3,640 from your taxes owed. If you don’t use it all, it can carry over to next year.
It should be noted that the 26 percent credit won’t last forever. In fact, solar owners used to be able to deduct 30 percent of the costs. By 2021, the credit will reduce to 22 percent, and continue to diminish after that. So, make sure you go solar before the ITC runs out!
Make Sure You Qualify
To reap the benefits of the solar tax credit, you must own your system—not lease it. Many installation companies will try to persuade you to rent from them so that they can make money off incentives. Unless you don’t have a tax appetite to benefit, owning is much more beneficial than leasing.
Partner with a Local Peoria Solar Company
As an Illinois-based premium solar installer, Summit Solar will make the installation process as seamless as possible. We’ll handle all paperwork for you and complete an initial shading analysis to ensure we can take you 100 percent solar. We’ll never pressure you into an installation if we don’t think your house can benefit.
Our team of professionals installs a sleek, clean panel system with hidden conduit and black glass to blend into your roof. Your solar panels will be the envy of the neighborhood—especially once you start saving!
Want to learn more about the solar panel tax credit or how to get started on solar energy? Contact Summit Solar here to discuss your home and renewable power.