You probably already know that making the switch to solar energy can be great for the environment, but did you know that it could be a great financial investment as well? Investing in solar energy can be a true win-win situation, allowing you to make a choice that is ecologically friendly and saves you money in the long run. Once installed, solar energy pays dividends by reducing the amount of money you have to spend on your utility bill. In fact, you may even be able to make some money of off your solar energy by selling any unused energy to your local utility service. Ready for some even better news? If you are able to take advantage of the solar federal tax credit 2020, you will be able to install solar energy in a way that has even more financial benefits than anticipated.
The investment tax credit for solar power is an incentive to help people save money when they make the switch to solar energy. As it stands now, taking advantage of this tax credit in 2020 means that you will be able to deduct 26% of the cost of installing a new solar energy system from your federal taxes. This can make the overall process of installing a solar energy system much more affordable and accessible, especially to those looking to install a residential solar energy system. However, something important to know about the IRS safe harbor rules solar, is that this tax credit will be dropping to 22% in 2021 for residential and commercial solar energy systems. Even more crucial to know, is that this tax credit plummets to 10% in 2022, and will only be available to commercial solar energy systems. Clearly, in order to maximize affordability, it is prudent to start installation of your solar energy system as soon as possible!
If you would like to take advantage of the higher solar federal tax credit 2020, the good news is that there is a clear way to do this! In order to have access to the 26% tax credit, you will need to establish what is known as a “Safe Harbor” for your solar energy system installation. In essence, you will have to be able to prove that you at least started construction on your new solar system during 2020. What counts as starting construction is the make or break for establishing a viable Safe Harbor. One way is to be able to prove to the IRS that you were able to put in a significant amount of physical work into the installation of your solar energy system. The other method, which is a little bit more targeted, is being able to prove to the IRS that you have spent 5% of what will end up being the full cost of installation during 2020.
Whichever way you decide to establish Safe Harbor on your 2020 solar installation project, iSolar is here to help you reach your goals! From offering consultations with wholesale solar suppliers, to helping you gain access to ongoing operations and maintenance support, iSolar will help you to achieve your dream solar energy system.