How To Take Advantage of the Disappearing Solar Tax Credit
Have you been thinking about making the switch to solar energy? Did you know there is a tax credit available that can reduce the overall cost of your solar installation? If you want to take advantage of these Federally offered savings, then now is the time to start planning your solar installation before this tax incentive goes away!
The Federal Solar Tax Credit
Also known as the Federal Investment Tax Credit (or ITC), this incentive for renewable energy allows for solar customers to deduct 30% of the cost of their solar installation from what they owe on their federal taxes. It also allows for the rollover of any unused deduction into the next year, if you owe less on your Federal taxes than what the full 30% covers.
But at the end of 2019, that percentage begins to sunset until it disappears for residential systems entirely in 2022. If you have been thinking about going solar, 2019 is the year to do it!
Here’s what the current timeline looks like for the disappearing federal solar tax credit:
- 2019: Tax credit remains at 30% for residential
- 2020: Tax credit reduced to 26% for residential
- 2021: Tax credit reduced to 22% for residential
- 2022 onwards: Tax credit reduced to 0% for residential
How To Get Your Solar Tax Credit
Deducting the cost of your solar installation is relatively easy. Simply save all your receipts, then fill out an IRS Form 5695, then add it to the usual 1040 form when you file your taxes for the year. For every $10,000 you spent on your solar installation, you can deduct $3,000 from what you owe the Federal government!
The State of Solar in California and Florida
Since Renew Financial helps homeowners in California and Florida to spread out the initial cost of their solar installation over flexible terms through their proprietary PACE program, here are a few things you should know about the state of solar in your respective home-state:
Solar in Florida
The Florida Public Service Commission recently ruled to allow solar installers to lease solar arrays to homeowners. This indicates that solar is finally on the rise in the Sunshine State, and will continue to get cheaper as more solar panels begin to pop up on your neighbors’ roofs.
Solar in California
First of all, California is ranked #1 in the country for installed solar energy, but there is no sign it will slow down anytime soon. California’s Building Standards Commission will require any new buildings of homes built after 2020 to have solar panels installed (exempting homes that are primarily shaded). Solar energy is slowly becoming the new standard — so the earlier you can have your system installed the more you will save in monthly energy costs.
Financing Your Solar Installation with Renew Financial
Solar energy is the next step in renewable home electricity, but you should have to take out a second mortgage on your house in order to pay for the necessary upgrades. With Renew Financial’s CaliforniaFIRST and RenewPACE programs, you can finance the cost of your solar installation over flexible term lengths, as a line item on your property taxes. It really is that simple!
So don’t wait for the federal incentives to disappear, and don’t miss out on another day of free, renewable sunshine that could be powering your home and reducing your energy bill. Whether you’re in Southern California, Bay area, Florida’s Panhandle, or all the way down through Tampa and to Miami, Renew Financial has an easy to understand financing program so that you can take advantage of solar energy as soon as possible.