The new year is in full swing, which means your list of new year’s resolutions should be made, and you should be checking off resolutions left and right as the year goes on.
What some people may not realize is that this year is especially important for one of the resolutions that seems to be on everyone’s lists every year, saving money. In 2019, if you invest in solar power energy in your home or commercial property you will receive a 30% tax credit of the total cost. However, this is the last year to get the max federal credit.
2019 is the Final Year to Receive the Max Federal Tax Credit
Back in 2015, homeowners, business owners and solar companies were given a generous Christmas gift when Congress granted the 2016 federal spending bill and extended the solar panel tax credit once again. The bill contained a 5-year solar tax credit extension, which makes solar energy more affordable and attractive to all Americans.
Homeowners and commercial property owners have been able to take advantage of the 30% tax credit of the total cost when purchasing and installing solar power energy of the past four years. However, the level of savings for this solar tax incentive will begin to decrease after this year.
Beginning in 2020, home and property owners who decide to go solar will only be able to deduct 26% of the total cost of their system. Then in 2021, the percentage will go down to 22%, and by 2022 the incentive will drop to 10%. After that, the 10% incentive will only apply to commercial systems.
This is why 2019 is the year to go solar. If you think about it, if your total system costs $25,000, you will receive a $7,500 tax credit back. If you do not owe that much at the end of year, this money rolls over into the next year. Not only could this incentive help you next tax season, but in the following year as well.
Take Advantage of this Incentive Now
Going solar comes with many valuable benefits, the most important being impressive tax incentives. If you’ve been considering investing in solar for your home or business we recommend doing so as soon as possible. Remember, if you want to qualify for the full 30% federal tax incentive for your residential or commercial system, you must have your system installed by December 31, 2019.