Ecohouse Solar was excited to learn the federal solar investment tax credit (ITC) was extended at the end of 2020. The ITC, which was initially going to begin phasing out at the end of 2020, received a much-needed two-year extension.
The extension will provide an extra incentive for going solar until 2023.
Here are a few core points you should know about the Investment Tax Credit (ITC):
- The ITC is the federal policy which allows solar system owners to be refunded some of their solar installation’s cost from their taxes.
- The solar ITC is the primary financial incentive to go solar in the U.S.
- In some cases, it can be used for battery storage as well.
The extension gives everyone more time to take advantage of the Federal solar tax credit.
Instead of dropping to 22% at the end of 2020, the tax credit has been frozen at 26% for all solar projects which commence construction between Jan. 1, 2021 and Dec. 31, 2022. This extension includes residential, commercial, industrial, and utility-scale arrays.
The current plan mandates that in 2023, the tax credit for all solar projects will drop to 22%.
Beginning in 2024, residential projects will no longer receive a tax credit. However, commercial and utility solar projects will retain a permanent 10% credit.
The tax credit extension will make solar an easy financial decision for many more homeowners in 2021 and 2022. Ecohouse Solar welcomes the opportunity to help homeowners in Central Ohio to go solar. Ecohouse makes the whole process easy with low-cost financing, and then follows through with great solar design and construction.
Please contact us for a free proposal