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The Investment Tax Credit or Federal Solar Tax Credit allows you to get 30% federal tax deduction for the installation of solar energy systems.These deductions can be availed on both residential and commercial solar installations.@ https://goo.gl/wtEbFV
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We are all aware of the threats our environment is facing in the present times. Slowly the
people are getting out of their slumber of ignorance. They are realizing that the resources we
have are limited and we must take proper measures to preserve them. Our environment is
facing threats like Global Warming, depletion of resources and so on. There are certain efforts
we can make to help the environment. Using renewable resources (can be replenished) like
solar energy can reduce our dependence on non-renewable resources (cannot be replenished).
Let me explain. When we use renewable resources like the solar energy, we reduce the use the
non-renewable resourceslike fossil fuelsin lesser quantity. This can help us reduce the threats
like Global Warming by lowering the emission of greenhouse gases. The depletion of non-
renewable resources can be controlled.
How can Solar Energy be used?
Solar Energy can be used through Solar Panels. Solar Panels are set of small solar cells. Lots of
small solar cells that are spread over a large area work together to absorb the solar light to
generate power. There are two forms of Solar Panels: Photovoltaic panels and Thermal Panels.
Photovoltaic Panels are used to produce electricity andThermal Panels are used for heating.
Benefits of using Solar Panels:
- First and foremost, it helps you save so much money that would be spent on electricity and
save fuels that we use for heating.
- Helps you save the environment by saving non-renewable resources.
- Solar Tax Credits are another reason to go solar.
The Investment Tax Credit or Federal Solar Tax Credit allows you to get 30% federal tax
deduction for the installation of solar energy systems.These deductions can be availed on both
residential and commercial solar installations.
Facts on ITC (Investment Tax Credit) Federal Solar Tax Credit:
- The Energy Policy Act of 2005 created a 30% ITC on residential and commercial solar
- In 2006, the Tax Relief and Health Care Act extended these credits for one year.
- In 2008, the Emergency Economic Stabilization Act included an eight-year extension of
residential and commercial ITC.
- In 2015, the Omnibus Appropriations Act gave a multiyear extension of residential and
Commercial ITC. This act brought about certain changes. It changed the earlier standard of
“placed-in-service” for qualification for credit to “commence construction” standard for all
those projects that would be completed by 31st December 2023.
- ITC is one of the most important federal polity that helped United States transform into a
renewable energy economy.
How does it work?
Solar Tax Credit is a tax credit which allows you to claim a reduction in income tax. This can
be claimed if residential properties or commercial properties have solar panel installations. ITC
depends on the amount that you invest in solar property. The percentage of credits that can
be claimed according to the new system is explained below.
-2016-19: 30% ITC can be claimed by both residential and commercial solar systems.
-2020- New owners can claim 26% tax credit on their taxes. This applies to both
commercial and residential installations.
-2021- New owners can claim 22% tax credit on their taxes, for both commercial and
-20122 onwards- New commercial owners can claim 10% tax credit. For Residential Solar
Systems there is no tax credit.
-The credit tax can be claimed by homeowners if the construction begins by 31st
December 2023. Previously, unless the system was working, no credit could be claimed.
-You cannot claim the residential tax credit if you sell the property where the solar
panels have been installed.
-With these incentives, the rate of solar system installation has increased drastically, and
the cost of solar system installations decreased.
As explained in the article above, going solar would not only help you save the environment but
give you so many more benefits. Who thought going solar would help you so much? If you have
any questions, please let us know.
SOURCE URL: https://goo.gl/wHTLmo