The Solar Lowdown: Customers Ask – What Is The Solar Tax Credit?

Skyline Smart Energy offers the Solar Tax Credit program to help you save on income taxes while transitioning to solar energy. With the Investment Tax Credit (ITC), homeowners and business owners who purchase and install solar photovoltaic (PV) energy generation systems between 2022 and 2033 can claim a federal tax credit equivalent to 30% of the total cost of the system, including components, installation, and associated fees in the year of installation.

By taking advantage of this program, you can receive a dollar-for-dollar reduction from your income tax that you would have paid without the credit. For example, if your solar PV system costs $20,000 and you claim the ITC at 30%, you can reduce your income tax by $6,000 for the year, effectively lowering the total cost of your system to $14,000.

Under the current legislation, if the credited amount exceeds your tax liability in the year of eligibility, you can carry over the remaining credit to the following year. However, it’s important to note that the ITC will decrease to 26% in 2033 and further reduce to 22% in 2034. If the credit doesn’t receive another extension, it will be eliminated at the end of 2034. Take advantage of the Solar Tax Credit now and enjoy the benefits of clean, renewable energy while maximizing your tax savings with Skyline Smart Energy.