The Solar Investment Tax Credit or ITC for short is an amazing incentive for going Solar. This incentive is helping grow the Solar Industry in the United States. Since the inception in 2006, America has seen a growth by more than 10,000%.
In 2015 the ITC was extended thanks to the overwhelming response and success of the program. Unfortunately, the tax credit will start decreasing in 2020. We have put together two of the top questions we get about the ITC incentive.
1 – How does the Federal /Investment Tax Credit (ITC) work?
Answer: The program provides a percentage credit against a solar system purchase. If you are a W2 employee, the total annual withholding tax taken from your paycheck is eligible for the ITC.
Solar System Gross Cost: $30,000
30% ITC= $9,000
W2 withholding tax taken from paycheck for the year = $10,000.
You would receive back the entire $9,000 the following tax season.
2 – Does the government provide federal tax credits for solar?
Answer: Yes. The US government offers a 30% Investment Tax Credit for solar systems. They will maintain this rate until the end of 2019. In 2020 the rate will go to 26%. Lastly, it will go down to 22% in 2021 and then to 10% in 2022.
Have questions about the ITC and Going Solar?
Call our Energy Experts at 833-FL-Go-Solar (833-354-6765). Once you become part of the Go Solar Power Family, we will be there to answer your questions from the day you install through the lifetime of your Solar Panels.