Did you know solar incentives can make your switch to solar power cost-friendly?
Unfortunately, these incentives are time-limited. Taking advantage of solar incentives now while they’re available makes financial sense both now and way ahead into the future.
It’s no surprise that the solar industry is booming. In fact, it’s noteworthy that the growth in employment associated with the solar industry has outstripped the national average by 5 times.
In this article, we will talk you through how to take advantage of solar incentives before the sun sets on this golden opportunity.
Federal Solar Tax Credit
This is also known as the solar investment tax credit (ITC). The basic concept is that if you invest in your own solar panels, you will be entitled to a measure of tax relief. Captain Green Solar Panels Perth says, put simply, what that means is that you will get a discount through a reduction in your income tax.
If you act soon, you will benefit from the highest level of incentive. These tax credits will expire after 2024. For solar panels purchased now, you could get a 26 percent discount, dropping to 22 percent in 2023.
State Level Incentives
Besides the national incentives available, you may also benefit from State-level incentives. For example, in Arizona, you could get as much as $1000 off your tax bill as a solar rebate.
It’s also worth knowing that you can also get credit if you generate electricity and contribute it to the national grid for other people’s use. Check your own state to see what provisions are available.
Importance of Ownership
To benefit from these tax credits you need to own your solar panels. If you’re renting them or hiring them in some way, you’ll not be able to get the discount. Thankfully, over the last few years, the cost of home solar panels has dropped significantly making them more affordable than ever before.
How to Claim the Incentives
You will have to pay the full price for your solar panels upfront. Where you save money is on your federal income tax. You’ll need to document your purchase in your tax return and include source documents like your receipt to get the rebate.
If an accountant looks after your books, make sure they are informed and have all the paperwork needed. Your accountant may also investigate the additional state incentives available to you.
Get Started With Solar Incentives
You’ve read about how to take advantage of solar incentives and save money on your initial investment. The window of opportunity is a finite one. These tax credits are scheduled to expire in a few years.
Don’t be one of those people that kicks themselves for having missed the opportunity. Tax relief is a fiscal tool that the government uses to advance the green energy agenda, but as you know agendas can change at any time.
Check out other articles on our blog for more money-saving advice.