With the 2020 tax deadline now extended to July 15 due to COVID-19, home and business owners have some extra time to sort through their financial documents so they can take advantage of any tax breaks they may be eligible for.
Did you know that there’s a federal tax incentive for going solar? Those who purchased a solar energy system in 2019 may be eligible for a 30 percent credit against any taxes owed — a perk that they’ll likely be smiling about come July 15.
For those going solar this year, the Investment Tax Credit or “ITC,” has been slightly reduced to 26 percent for residential, commercial and utility solar projects. This is a good reason to stop postponing the decision to switch to clean renewable solar energy for your home or business.
After 2020 the credit will step down to 22 percent in 2021 and then be eliminated for homeowners and reduced to 10 percent for businesses in 2022 — unless solar advocates successfully persuade the federal government to continue offering such renewable energy incentives.
Solar Technologies Can Explain Solar Financing
If this discussion of how going solar affects your finances feels confusing, don’t worry. The SunPower by Solar Technologies team has been helping our customers understand home solar and commercial solar financing for more than two decades!
At Solar Technologies we offer a variety of solar financing options so that every homeowner can save with solar regardless of their budget or credit history.
And for businesses, we are experts in providing cash-flow positive financing solutions with little-to-nothing due upfront. Whether you’re a commercial, non-profit or government organization, our team can custom-tailor solar financing to fit your budget and investment objectives.
The Database of State Incentives for Renewable Energy is a great resource for finding solar incentives offered throughout the San Francisco Bay Area. Just enter your zip code to see rebates and credits near you.
For example, GRID Alternatives helps homeowners who meet certain income requirements go solar. You can find GRID programs on the DSIRE.
With offices in Santa Cruz, San Ramon and Campbell, we’re well-versed in local renewable energy policies. It’s our job to maximize your savings via solar tax credits like the ITC and other local or state incentives that can help offset the cost of your solar energy system.
For more information, call us at (831) 200-8763 or fill out our online contact us form. You can also check out the Solar Energies Industries Association’s downloadable factsheet, “How Does the Solar Investment Tax Credit Work?”
Disclaimer: This article provides an overview of the federal solar investment tax credit (ITC). It does not constitute professional tax advice or other professional financial guidance and may change based on additional guidance from the Treasury Department. The information in this article should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions, or when executing other binding agreements.