The Solar ITC, or Investment Tax Credit, was launched as part of federal renewable energy initiative in 2006 to provide homeowners the opportunity to make efficiency improvements to their home, and should they qualify, receive a potential credit percentage back in tax credits at the end of the year for every dollar spent on qualified energy improvements.
For additional encouragement since its 2015 extension, the percentage of potential tax credits homeowners could qualify for came with a built-in annual decrease. Beginning with 30% in 2016 through 2019, 26% during 2020 and extended through 2022, drop to 22% in 2023 and finally a decrease to zero for residential in 2024.
Basically, if a customer has considered solar or energy upgrades for their family, there has never been a better time to take the step toward solar than now. Uncle Sam is encouraging nerds across the country to take the next step in green energy and we are there to help! Please check with your direct manager for further details on state level incentives for home energy improvements.
ITC Limitations
Not every homeowner qualifies. The homeowner must be paying taxes or have a tax liability to be eligible for the potential tax credits, because of this, not all customers will see tax credits. A key point to make here is that Nerd Power nor anyone in the Nerd fam are financial advisors and we always advise our customers to seek the counsel of a financial planner or tax professional should they have questions regarding their potential investment tax credits.
Nerdy Tax Advice
At Nerd Power, we’re certainly not tax professionals, so we can NEVER guarantee what a customers tax liability is or how much they could potentially get back so please advise each of your customers to contact their tax professional on which path is the best for their specific financial future and how best to allocate their solar ITC if they are eligible to receive one.
But chances are, if they pay taxes on their wages during the year of system activation, they could get a portion of that investment back. Keep in mind that these Investment Tax Credits do not provide credits for investments made in reduction programs such as Britech, Intellipool, etc. For those items, each customer should check with their local utility provider for any available credits or vouchers and the state they live in for any additional incentives at the state level.
ITC in Closing
Not every homeowner can take advantage of the federal ITC incentives but for those who can it’s yet one more reason why now is the best time for them to take the next step in making an investment in solar with Nerd Power!
See if you qualify for solar! It takes 2 minutes! Click Here