The Federal solar tax credit, or investment tax credit (ITC), was created in 2005 and extended until 2019. After 2019, the credit will start dropping from its maximum of 30% at the rate of a few points each year. While the tax credit will continue for several years, homeowners should take advantage of the maximum amount they can get by investing in solar home energy before the end of the year.
Homeowners may have seen the credit advertised from various solar companies, but they may not realize how enticing the deal really is. A number of benefits in the credit make this unique and one homeowners should take advantage of.
- The credit doesn’t have a cap. This means homeowners can really take advantage of getting the home solar system that works for their house regardless of size. While homeowners average over $5,000 in savings, homeowners with extensive and larger solar panel installation will be able to get more than that.
- The definition of “residence” is very open. Although primary single-family dwellings are the most common residence, the credit can also be used on houseboats, mobile and manufactured homes,. Investors or landlords can also use the credit on rental properties. Additionally, the credit isn’t limited to just primary residences. Even second or vacation homes qualify.
- Home solar systems only have to be installed, not operational, by the end of the year. With previous tax credits, installation had to be operational in order to claim the tax credit. Now, the only requirement is to have the installation completed with an operational date of before December 31, 2019.
- Credits can roll over from one year to another. If a homeowner doesn’t have the full tax liability to claim the entire 30% credit, it can be rolled into the next year.
Since the solar tax credit is already on its second renewal and is unknown if it will be renewed again, Clever Energy recommends homeowners contact their local energy specialist to start the consultation process. Located in the downtown sunny Orlando, Clever Energy works throughout central Florida including the surrounding communities of Oviedo and Casselberry and offers FREE estimates with certified and licensed installers.
Clever Energy is a family-owned solar company specializing solely on solar panels and offers FREE personalized consultation in both Spanish and English with licensed installers.