Good news! The Federal Solar tax credit is set to increase to 30% and they are here to stay for at least 10 more years.
EXTENDED FEDERAL TAX CREDITS
Solar tax credits were set to expire in 2024. There are no reductions for new PV installations. This bill however calls for a 10-year extension.
This means that new solar installations may qualify for a 30% tax reduction until 2033. It will drop to 26% by 2033 and 22% by 2034.
Without this bill 2024 would have been the last year of solar tax credits.
A Win for U.S. Solar
This unexpected twist is a win for the solar and renewable power industry thanks to an agreement between Democrats and Senator Joe Manchin, in August 2022.
They have reached an agreement on a reconciliation bill (‘Inflation Reduction Bill of 2022’), which allocates $370 billion to renewable energies and climate measures.
” This legislation shows that we don’t have to choose between great jobs and a clean environment as some claim. Both are supported by the Inflation Reduction Act. This bill will create union jobs that pay well and reduce the carbon emissions that cause climate change. It will make a significant impact on the growth of clean energy, revitalizing manufacturing, as well as building resilient communities.”
A Win For The Planet
The Inflation Reduction will also make a significant impact on the fight against climate change. According to estimates, it will reduce greenhouse gas emissions by 40% in 2030, making them lower than they were in 2005.
The Solar Energy Industries Association President and CEO said:
Today is a historic day for America’s clean-energy progress. Solar and storage companies are now one step closer to having the financial certainty they need to make long-term investments to decarbonize the grid and create millions of more job opportunities in cities and towns across America.
” This legislation represents the most significant investment America has made in its climate future. We are grateful to our members, the clean energy community, and all of our solar champions at Congress for their efforts to bring us to this historic moment.”
“The solar industry set a goal of 30% of all U.S. electric generation by 2030, so this legislation will help to get there.”
30% REDUCTION IS RETROACTIVE FOR 2022 INSTALLATIONS!
Any eligible system that was installed by 2022 will retroactively be eligible for the 30% reduction. You do not need to wait for 2023.
These are the requirements to be eligible for Federal solar tax credit in Florida.
- You must have your solar panels installed by 2022 to be eligible for the retroactive 30% credit.
- Someone who is subject to U.S. income tax must use the solar power system.
- Your primary or secondary residence must have a solar panel system.
- The solar PV system must be owned.
- The system must be either new or in use for the first time.
- All fire and electrical codes must be followed.
What are Solar Federal Tax Credits?
- Tax credits can be used to reduce your income tax bill.
- Ten Thousand Federal Tax Credits equals a $10,000 tax credit on your income tax bill.
- You can claim a percentage of the installation costs for your solar system on your federal income taxes.
- There is no maximum amount you can claim.
- You can roll it over to the next calendar year.
WHAT CAN SOLAR TAX CREDITS HELP YOU SAVE?
These savings can be realized with solar panel or solar system installation:
|Year||Tax Credit Percentage||Save on $30,000 Installation (For example)|
|Installed in 2022||30%||$9,000|
You can get solar tax credits for upfront and delayed costs.
- Solar Power Installation Fees
- Solar Equipment
- Solar PV and solar cells
- Permitting Service Costs
- Permit Fees
- Shipping costs
- Engineer Fees
- Electrician Fees
- Solar panels power solar batteries
- Solar panels power energy storage systems
A side note: Federal tax incentives will also be available at their respective rates for:
- Electric vehicles
- Wind energy
- Home Efficiency Projects
HD Roofing & Solar has prepared well in advance so that every installation plan can be completed on time. Our customers will never be disappointed.
Those who don’t get locked into the current pricing will likely see an increase in prices.
Florida Solar Installation – START NOW
We are one of Florida’s most respected, solar companies and would love to help you get a 30% solar tax credit.