If you’ve ever been thinking of making the investment to switching to solar energy, sooner really is better than later. Though making the switch to more environmental energy sources has always had great ecological advantages, there is an extra financial incentive to making the switch now. Read on to find out if your business could potentially benefit from the Solar Federal Tax Credit 2020.
A federal spending bill approved by congress in 2015 has been helping to make solar energy more financially accessible since 2016, by allowing owners of new residential and commercial solar energy systems to deduct a portion of their installation cost from their federal taxes. This investment tax credit for solar power currently allows for 26 percent of installation costs to be deducted from one’s taxes. However, this percentage will be dropping to 22 percent in 2021 for new residential and commercial solar systems. Further still, this deduction will fall to a mere 10% in 2022, and will only apply to new commercial solar power systems. Anybody looking to install a new solar power system, whether residential or commercial, will find it more financially accessible to do so while the credit is as high as possible.
Thankfully, the IRS Safe Harbor Rules Solar, allow for potential solar customers to still take advantage of the higher 2020 deductible rate. Beginning construction of a solar project during 2020 can help secure a “Safe Harbor” for a potential client, allowing them to claim the higher 26% deductible rate. In order to establish that a client has started enough construction to qualify for the IRS Safe Harbor Rules Solar, they must either be able to prove to the satisfaction of the IRS that they have put a significant amount of physical work into their solar installation before the end of 2020, or that they have spent at least 5% of the total solar installation cost before the end of 2020. Both options offer clients the ability to gain the benefits of solar energy, while also being able to take advantage of the Investment tax credit for solar power while it is still at the high rate of being a 26% deductible.
iSolar Brokers offers a wide range of solar products, from durable inverters to reputable racking solutions. iSolar Brokers can facilitate consultations with wholesale solar suppliers, first-in-class solar distributors, and highly trained engineers to make sure that clients find the best solar solutions to suit their specific needs. A core mission for iSolar Brokers is to provide every organization with the solar energy that they need. Given the high rate of the Solar Federal tax Credit 2020, now could be one of the most advantageous and financially viable times to make the switch to Solar power with iSolar Brokers.