In Solar Tax Credits Are Disappearing! I related that before January 1, 2020, an owner of solar panels was entitled to a 30% credit against federal income tax owed. In 2020 the credit was reduced to 26%, and for 2021 it was to drop to 22%. But thanks to the Covid Relief package the tax credit for this year will remain at the 2020 level of 26%. 2022 will be the same, with a reduction to 22% in 2023. After that year it is scheduled to disappear entirely. To qualify, a system needs to be “placed in service” prior to the year end deadlines, which means installed, operable and ready for inspection. Don’t forget that a solar tax credit will be reduced by the sum of any credit for a plug-in hybrid or electric vehicle purchased that same year. So stagger those purchases in consecutive years to get the full benefit of these tax credits.
Solar Tax Credits Are Reappearing!
by firstname.lastname@example.org | Aug 6, 2021 | Home Ownership, Real Estate Facts & Figures | 0 comments