Listen up Fresno, Visalia, Hanford, Clovis, Tulare and Madera. If you’ve been on the fence about going solar, here’s a great reason to make a decision soon: The U.S. federal solar investment tax credit, known as the solar ITC, is set to decrease after 2019.
This tax credit, which you can apply toward your 2019 income taxes. The system must be purchased via cash or loan and installed before 2020. (There is also a tax credit for businesses that go solar.)
How does the Federal Solar Tax Credit Work?
This tax credit allows up to 30% of the total cost of the system purchased in 2019. If you have a huge tax bill, the credit can be taken all at once or you can utilize the credit over multiple years. For example, if your solar panel system costs $18,000, a 30% tax credit would be $5,400. If you owe $4,000 in taxes for 2019, your tax bill will be reduced to zero, with a remaining $1,400 tax credit for your 2020 and future returns. This IRS solar tax credit comes in handy when tax season rolls around!
Now to put this in perspective, if a homeowner waited until 2020 to install their solar panel system that same system would receive a smaller tax credit. Take the same example above $18,000 solar panel system but now you