Phoenix area homeowners have a deadline approaching when it comes to solar panel installation. To qualify for the Federal Investment Tax Credit (ITC) of 26%, you will need to get your home solar system installed by December 31st. After this date, the credit will drop to 22%, and in 2021, the credit will go away altogether.
While solar installation only takes a couple of days to complete, obtaining city and utility approvals and permits takes time. So, the sooner you get started on a home solar project, the more likely you’ll be able to benefit from the solar tax credit. There is also a State of Arizona tax credit of $1000 that can be applied to your annual state taxes.
A Few Home Solar Tax Credit Facts
The ITC is a tax credit for solar systems on residential and commercial properties. The residential and commercial solar ITC has helped the US solar industry grow by more than 10,000% since it was launched in 2006. This includes an average annual growth of 50% over the past decade.
The ITC is a dollar-for-dollar reduction in the income taxes that you would otherwise pay the federal government. The ITC is calculated on the amount of investment in solar. Both the residential and commercial ITC are equal to the percent of the basis that is invested in eligible solar property.
To receive a free customized quote for your home’s roof, call Cool Blew Solar today at 623-234-2836. Don’t wait until the tax credit goes away. This savings is substantial and can help you maximize the impressive value of solar. Get started today!