30% Federal Tax Credit – Extended Through 2032
On August 16, 2022, the federal government announced a new 30% tax credit for homeowners who install solar panels on their homes. This is great news for anyone looking to save money on their energy bills and reduce their carbon footprint.
The 30% tax credit, which is also known as the Solar Investment Tax Credit (ITC), is available for both residential and commercial solar installations. It applies to the cost of the solar panel system, including installation and equipment.
This means that homeowners who install solar panels on their homes can save up to 30% of the total cost of their solar panel system. That’s an extra $1,000 in tax credit for purchasing a $25,000 solar system.
The Solar ITC was first introduced in 2006 and has been extended several times since then. It was set to expire in 2016 but was extended through 2019. And now, it has been extended again, this time through the end of 2032.
The Solar ITC is an important incentive for homeowners to switch to solar energy. It helps to offset the initial cost of installing a solar panel system, which can be a significant financial investment. Over time, the savings on energy bills can more than make up for the upfront cost.
Not only does solar energy save homeowners money, it also has numerous environmental benefits. Solar panels produce clean, renewable energy that doesn’t produce greenhouse gases or other pollutants. This helps to reduce our reliance on fossil fuels, which are the main cause of climate change.
In conclusion, the 30% federal tax credit for solar panels is a great opportunity for homeowners to save money and reduce their carbon footprint. This tax credit is available through the end of 2022, so now is the perfect time to switch to solar energy.
*We are not tax professionals, and the tax credit can only be used to offset a tax liability. If the household doesn’t pay taxes, they should look at Sun Solars smart plan where they can lease the panels with no upfront costs.