Go Solar and Put Money in Your Pocket with Federal Tax Credits
Many homeowners are considering solar for their homes but are hesitant because of the up-front costs. Luckily, now a federal solar incentive program makes it easier than ever to reduce your energy costs and carbon footprint without the fear of expensive installs. Read on for more information about the federal tax credits and how SunLogix can help you become energy independent.
Call SunLogix now to speak with our solar experts in the Coachella Valley.
What You Need to Know About the 2022 Federal Solar Tax Credit
The 2022 Federal Solar Tax Credit lets homeowners deduct 26 percent of the cost of installing a solar energy system from their federal income taxes the year it is installed. It is also applicable to commercial systems, and there’s no limit to the amount that can be claimed. The average shopper can save almost $9,000 by claiming this solar tax credit. The credit will roll over if it exceeds your tax liability for the year, but it only applies to owned solar energy systems, not solar leases. It’s important to note that this credit drops to 22 percent in 2023, and while businesses can still deduct 10 percent in 2024, it goes away completely for homeowners.
The tax credit can only be claimed for new installations. However, it covers many different aspects of solar energy installation. Homeowners can claim the credit for the cost of solar panels, labor costs including installation, permitting fees, developer fees, inspection costs, additional solar equipment, batteries charged by solar equipment, and sales taxes on these expenses. The credit is not refundable and won’t increase your refund, but it can be carried forward for up to five years, meaning that if you can’t use it this year because you don’t have the tax liability, you can claim it next year.
Additional Solar Energy Incentives
Along with the federal tax credit, many other solar incentives are available, including rebates, state programs, and local tax credits based on where you live. Some of these may affect your federal tax credit, but many can be combined with the federal credit for an even bigger incentive.
For instance, while a rebate from your utility company will typically reduce the system’s cost before you calculate your tax credit, rebates from the state are not likely to reduce the federal credit. If your state offers a tax credit, it won’t reduce the federal tax credit.
Switch to Solar with SunLogix and Reap the Benefits
With so many credits and rebates available, why wouldn’t you choose to go solar? If you’re looking for a solar energy installer with a stellar reputation and quick turnaround, contact Sunlogix Energy.
Call our Coachella Valley installers for solar you can rely on and service backed by a stellar reputation and years of experience. SunLogix Energy is your local solar installer at home or for commercial solar.