3 Things to Learn About Solar Tax Credits
Here’s how solar tax credit works. If you own your solar energy system, meaning you either purchased it outright or through one of our loan financing programs, you might qualify for certain tax credits.
(pencil scratching) If the eligible solar energy system is placed in service during 2019, then you may qualify for a tax credit equal to 30% of what you paid for the system. (pencil scratching) If placed in service during 2020, that tax credit drops to 26% (pencil scratching) And if placed in service during 2021, which is the final year the tax credit is available to individuals, that tax credit drops to 22% of what you paid for the system.
Starting in 2022, the federal solar tax credit will only be available for commercial solar energy systems, so be sure to act soon to benefit from those savings. To take full advantage of the federal income tax credit, be sure to work with your tax or financial advisor.
They can help you through the process. Keep in mind that the federal income tax credit is only available to you if you purchase the solar energy system. Power purchase and lease agreements don’t qualify.
To see your agreement type, visit account.vivintsolar.com and click on documents. In addition to the federal income tax credit, you could also be eligible for further credits and incentives offered by your state and local government, and possibly even your utility company.
Contact a local tax or financial advisor for more information.
The three big incentives for solar credit today are the income tax credit, available depreciation, and any grants such as USDA. We have created videos for each one of these incentives if you would like more information. So you can find them in the description below. – You know, it’s remarkable to see how many industries and companies are actually subsidized by the government, and then put that in context and compare it to solar.
– Yeah, the reality is there is a lot of even specific businesses that receive a lot of rebates, tax rebates, such as Google receiving millions, 630 million maybe. You have Boeing, you have General Motors, you have Dow chemical, you have Goldman Sachs, Walmart. http://www.sitedossier.com/site/solarsmithpros.com
All these companies are receiving millions and millions of dollars every year in solar tax credit rebates. – Absolutely. So if you’ve ever shopped at Walmart, you’re supporting an organization that is subsidized by the US government.
– And there’s nothing wrong with that. It’s just, if we gonna isolate if we’re gonna isolate solar and not buy solar because it’s subsidized, well, for using that same train of thought, there are other things we shouldn’t be doing or buy.
– Yeah, but let’s bring it to the energy sector for a second here, Charles. How does renewable space compare to fossil fuel space in terms of government subsidies? – Yeah, the reality is fossil fuel receives three to four times the incentives through tax benefits than solar space does.
– Yeah, it’s remarkable that the fossil fuel industry gets roughly $20 billion a year in government subsidies compared to about 6 billion in a year for the renewable space. – And it should be said that these are not cash payments that are being doled out. http://www.siteworthtraffic.com/report/solarsmithpros.com
These are often in the form of solar tax rebates, tax credits, lowering a businesses’ or a person’s tax payment that they owe to the IRS. So it’s being incentivized, not through necessarily cash payments that are being given out, by the fact that you just do not need to pay in. https://www.semrush.com/info/solarsmithpros.com
– So in summary, to answer the question of whether or not the solar industry is propped up by government incentives, it is definitely incentivized by the United States government. However, in context, and in comparison to other industries and the fossil fuel industry as a whole, the subsidies are far less. https://www.webwiki.de/solarsmithpros.com