The federal investment tax credit (also known as the federal solar tax credit) will be stepping down over the next few years, and home and business owners should act quickly to take advantage of the savings.
When should your solar system be installed?
For homeowners, this means the solar energy system must be completed by December 31 of each year to be eligible for the tax credit. In other words, to receive this year’s 30% tax credit, projects must be completed by December 31, 2019.
Solar Tax Credit Schedule
After this year, the tax credit is not completely eliminated, just reduced. It is on a scheduled step-down over the next few years. This tax credit is a valuable tool for homeowners to reduce their energy costs and save on the costs of their solar installation.
The tax credit will lower from:
- 30 percent in 2019
- 26 percent in 2020
- 22 percent in 2021.