Currently, the federal investment tax credit for solar projects is equal to 30% of total project costs. The tax credit is uncapped and applied towards your federal income tax liability. Next year, the solar tax credit will step down to 26% of total project costs. With this change, we anticipate a busy solar installation calendar, so now is a great time to start your project.
If your home or facility will be under construction at the end of this year, we can help you meet criteria to claim the full 30% tax credit for a solar project completed in 2020.
If you would like to build a project and claim the full 30% solar tax credit, let us know! First, we will discuss your site’s potential for solar and provide general project cost and savings estimates. If you like our preliminary estimates, we will conduct a site visit and present your formal proposal.
Submit our Contact Us form to get started, or call 615-641-4050 to move your proposal into the project phase.
The federal investment tax credit for solar will continue to step down more and more over the next few years. In 2020, it goes down to 26%. In 2021, it goes down to 22%, and in 2022 it goes down to a permanent 10% for commercial solar projects and no credit for residential solar projects. There is a safe habor allowance so that if you start construction in 2019, or incur 5% of project costs in 2019, you can claim the full 30% tax credit for projects completed in 2020 and beyond.
Please consult your tax professional to make sure you will be able to capture the full 30% tax credit for your solar project. More solar tax information is on the Solar Energy Industries Association website. Contact us today about building your solar project!