Claim your 2020 tax credit before the program expires.
The Investment Tax Credit (ITC), also known as the federal solar tax credit, allows you to deduct 26% of the total cost of a solar energy system from your federal taxes in 2020. These costs that can be claimed include solar equipment, shipping costs, solar consulting fees, permitting, and professional installation fees.
The ITC applies to both residential and commercial systems, and there is no cap on its value! The solar credit only applies to owned systems — not leased. Construction must be completed by December 31, 2020 in order to claim this tax credit.
It is important to note that when it comes to the residential ITC, the IRS states that your system must have permission to operate by the end of the year to qualify for that year’s tax credit.
For this reason, it is important to install solar now, before the program expires. The solar tax credit will drop year over year until 2022. It will decrease to 22% in 2021 and will expire completely in 2022 for residential installations and remain at 10% for commercial projects. If there is not enough tax liability to claim the entire credit in one year, the credit can “rollover” onto future years for as long as the tax credit is in effect.
If you are thinking about going solar or adding panels to your home or businesses’ solar system, there has never been a better time. This is the year to take advantage of the maximum amount of the solar tax credit; even if that means you are only adding to an existing system; the credit still applies!
Get solar in 2020. Get your 26% tax credit today!
A.M. Sun Solar is committed to Growing Communities with the Power of the Sun. They are the local solar leader with extended knowledge in federal solar tax credits, local solar policies, and custom solar system design and installation. A.M. Sun provides great value and outstanding customer service to residences and businesses throughout Central California.