Federal Credit Continue To Help Solar Panel Purchasers Save

We all love to save money, it's a delightful experience.  It is similar to eating a delicious meal or getting a compliment.  Many enjoyable experiences can occur in life.  One such enjoyable experience that may come with saving money happens when governmental agencies give us a way to save money while purchasing items we want. Some people want to have solar panels.  The news for them was excellent in 2015 when Congress ratified the 2016 federal spending bill and prolonged the solar panel tax credit. The December 18 bill carried a 5-year solar tax credit continuation, which advances solar toward a more affordable prospect for all Americans. Questioning how this affects you?  Let's explore the information. 

Solar Tax Credit

The federal solar tax credit, also recognized as the investment tax credit (ITC), enables people to subtract 30 percent of the price of installing a solar energy system from one's federal taxes. The ITC is for both residential and business solar panel systems, and there is no top to its savings. Thankfulness to the ITC, the common solar panel shopper saved over $5,000 on the cost of going solar in 2017. Shoppers saved over $5,000 on the cost of going solar in 2017.

Federal Solar Tax Credit And Solar Industry

The federal ITC was initially founded by the Energy Policy Act of 2005 and was set to die at the close of 2007. A set of continuations pushed the expiration date back to the end of 2016, but experts concluded that an extra five-year extension would bring the solar industry to its full development. Luckily the spending bill that Congress passed in late December 2015, the tax credit is momentarily accessible to homeowners in some kind through 2021. Here are the details:

2016 – 2019: The tax credit persists at 30 percent of the price of the solar panel system. This percentage indicates that in 2017, you can continue to get a significantly reduced cost for your solar panel system.
2020: Owners of new domestic and business type solar can subtract 26 percent of the price of the system from their taxes.
2021: Buyers of new residential and commercial solar can subtract 22 percent of the price of the solar panel system from their taxes.
2022 onwards: Purchasers of new commercial solar panel systems can subtract 10 percent of the cost of the operation from their taxes. There will be no federal credit on residential systems.

Also notable, in past years, buyers of new solar energy systems couldn't command the tax credit unless their system was functioning. Currently, the law allows them to get it as soon as the building of the system is concluded, but must be operating by December 31, 2023.

Move into the future with solar with the help of HahaSmart., Try our price checker tool and see how affordable solar really is. We can also help find qualified solar installers who can help save you money on the cost of going solar.

Don't forget to visit our solar blog section for more handy guides and articles, about going solar.