Are you looking, as many homeowners are these days, to make some serious renovations to your home? If yes, there’s one addition that can do a lot of good for yourself and a lot of good for the world at the same time.
We’re talking about making the switch to solar energy. Running your home off solar can help save you loads over time on your energy bills, and it helps craft a greener future for the planet as a whole.
Plus, if you act now, you can take advantage of the federal and state solar panel tax credit opportunities that currently exist. What are these opportunities to save and how do they work? Read on and we’ll walk you through what you need to know.
The Federal Solar Panel Tax Credit
It is in the interest and goals of the federal government to encourage citizens to make the switch to solar. The government has a responsibility for the safety and well-being of future generations of Americans, and ensuring green energy is adopted is a big part of this responsibility.
As such: the federal solar tax credit. Any individual or business that installs some kind of solar energy system is eligible for some level of tax discount. A lower tax bill provides a great incentive to many who want to make the switch.
This federal solar tax credit was first put into place in 2006 and has been extended ever since, most recently by President Donald J. Trump. The solar industry has created hundreds of thousands of jobs for Americans within that time.
Who’s eligible for the credit? Anyone who within a particular tax cycle installs a solar energy system on their home. In 2021, 26% of the cost of your solar energy system can be deducted from your taxes. This percentage tends to decrease slightly each year that goes by, so it’s in your best interest to act fast.
The only other requirements are that you own the system outright and that it is installed within the United States.
State and Local Tax Incentives
Depending on where you are located, there are a number of state and local tax credits that may be available to you as well. This will all depend on the area in which you reside.
These state credits and rebates vary from place to place and serve in addition to the federal tax incentive. Installing solar panels within a certain jurisdiction should make you eligible for that jurisdiction’s incentives and rewards.
If you’re unsure of what the incentives are in your own area, a reputable solar panel company in your region should be able to advise you.
The combustion of federal, state, and local solar tax incentives can add up to quite a discount. When deciding whether you want to make the switch to solar, factoring in these savings will be something you don’t want to forget.
Saving When Installing Solar Panels
If you’re looking to make the switch to solar soon, you’ll want to get familiar with the solar panel tax credit options out there. The above can serve as a handy guide on the subject.
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