State Tax Incentives For Solar Power

Solar panel incentives by state.

State tax incentives for solar power.

The value of solar incentives in pennsylvania is even greater when taking into account the recent extension of the federal investment tax credit itc for solar. The residential renewable energy tax credit as the irs calls it can be an attractive way to save on the significant cost of installing solar panels or roofing an average sized residential solar. In addition to the state specific incentives and programs mentioned above you can reduce the cost of your solar panels system by 30 percent thanks to this great government program. The solar itc is a major incentive for going solar that most americans are eligible to claim.

The 30 tax credit applies as long as the home solar system is installed by december 31 2019. For residential projects the maximum rebate is 5 000 for a solar electric system and 2 500 for an energy storage system. After 2021 the tax credit for residential solar. The federal solar tax credit itc don t forget about your federal solar incentives.

Legislators on capitol hill recently approved an extension of the solar investment tax credit itc which is one of the most significant pv subsidies out there. If you install solar panels before the end of 2020 you will receive a tax credit that is equal to 26 percent of the cost of your solar installation. On a 10 000 solar project the credit would put 2 600 back in your pocket significantly speeding up your payback period. The new york solar tax credit can reduce your state tax payments by up to 5 000 or 25 off your total solar energy expenses whichever is lower.

Read our quick primer on the federal solar tax credit for more info. In december 2015 congress acted to extend the 30 tax credit through 2019 with a step down in subsequent years. Starting in 2020 the value of the tax credit will step down to 26 and then again to 22 in 2021. See the administrative rules for detailed incentive calculations for solar systems and storage systems.

To 26 in 2020 to 22 in 2021 and thereafter it is 0. The great advantages of the solar equipment tax credit are twofold. You can reduce the cost of your solar panel system by 26 percent thanks to this great tax credit. It applies to you even if you went solar with a lease or.

The solar investment tax credit itc is a federal tax credit for solar systems placed on residential under section 25d and commercial under section 48 properties. The federal solar tax credit also known as the solar investment tax credit or itc is the single most important solar incentive available in the united states. First you don t have to purchase your system to claim the credit i e. The federal solar tax credit gives you a dollar for dollar reduction against your federal income tax.