How the Solar Tax Credit Works

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=14ZQfLvDetY

https://www.energysage.com/ • The investment tax credit (ITC), also known as the federal solar tax credit, allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. Learn more about how the ITC can help decrease your cost for a solar panel system. • The investment tax credit, or ITC, will give you 30 percent of your solar costs back as a credit on your federal tax returns. You can think of this as a 30 percent discount on the costs of going solar. • If you own your solar panel system, you are eligible for the ITC. However, you aren’t eligible if you lease your solar panels, or if you signed a power purchase agreement. • There’s no cap on how much you can claim with the ITC, but because it’s a credit and not a refund, you can’t get more back in a single year than you owe in federal taxes. Instead, the remainder of your credit will roll over into the next year. • Here’s an example: if your system cost $20,000, then you’re eligible for 30 percent of that as a tax credit, or $6,000. But if you only owe $5,000 in federal taxes that year, then you’ll eliminate all of those taxes, and still have $1,000 leftover for the next year. For more details on how this works, we recommend you talk to your tax advisor. • Unfortunately, the ITC won’t be available forever – it shrinks from 30 percent to 26 percent in 2020, and disappears altogether for homeowners in 2022. Take advantage of it today, and start shopping for solar on EnergySage. • Resources: • Congress extends solar tax credit: http://bit.ly/2wtpQD1 • Solar ITC explained: http://bit.ly/2way2bG • How to claim the solar tax credit: http://bit.ly/2MOgHyT

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