At DC Solar Electric we work to keep updated with all things solar, including relevant news from the government and financial industries. With all the current news reports highlighting the potential effects of the Republican tax bills moving through Congress, we want our customers to know that our company is hard at work ensuring you can attain the best deal on your solar purchase and your relevant Solar Investment Tax Credits.
While solar and wind provided a total of 7 percent of electricity last year, the House and Senate bills could curb this industry growth by rolling back and wearing down the value of tax credits. The Trump administration and EPA have commented on leveling the playing field by reducing incentives between wind, solar, coal and natural gas. However, as it stands the Solar Investment Tax Credits will likely remain available until 2021.
How does the Solar Investment Tax Credit (ITC) Work?
A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. Both the residential and commercial ITC are equal to 30 percent of the basis that is invested in eligible property which have commence construction through 2019. The ITC then steps down to 26 percent in 2020 and 22 percent in 2021. After 2021, the residential credit will drop to zero while the commercial and utility credit will drop to a permanent 10 percent
Commercial and utility projects which have commenced construction before December 31, 2021 may still qualify for the 30, 26 or 22 percent ITC if they are placed in service before December 31, 2023. The Treasury and IRS are currently drafting guidance which will inform solar developers of which percentage of ITC they will qualify for depending on when they started their project.
DC Solar Electric is prepared now to have you join in the hundreds of Placer County customers we have already helped save millions by ensuring the benefit of Solar ITCs available today. Call our Northern California offices today to discover the right solar system to fit your needs, secure your tax credits, and score our December special bonus.