Tax Season is upon us – the countdown has begun! While it’s not nearly as exciting as Christmas season and determining naughty and nice certainly seems if not inappropriate, perhaps just logistically improbable.
Don’t let this be you (see meme)! All joking aside, I sincerely hope you don’t have a ruff year this tax season, and to help I’ve added a little information below. Please check out the links but also consult your tax advisor with any specific questions!
Of course, one thing that I think is fair to say, is that the earlier you file, the better. What’s not to love about money in your pocket? Or, in at least not delaying the inevitable, should you owe money in taxes at the end of the year.
Either way, there is one thing worth taking a look at each year – and that’s the Solar Federal Investment Tax Credit (https://www.seia.org/initiatives/solar-investment-tax-credit-itc).
Of course, the earlier to file the better. What’s not to love about money in your pocket? Or, in at least not delaying the inevitable, should you owe money in taxes at the end of the year. However, there is one thing worth taking a look at each year – and that’s the Solar Federal Investment Tax Credit (https://www.seia.org/initiatives/solar-investment-tax-credit-itc).
According to the link above, from trusted Industry Experts, SEIA.org – the Federal ITC is 26% in 2022, and rolling down [currently] to 22% next year; take a look for yourself: https://www.seia.org/initiatives/solar-investment-tax-credit-itc
Don’t even get me started on column 3 – the projected Solar ITC in 2024. Residential Solar will have a 0% Federal Tax Credit in just two years?!!
Of course not! However, it’s up to us [insert Solar Industry and/or Energy Customers/Consumers, alike] to ask for an increase in the Federal and State Solar Investment Tax Credits, and maybe more importantly, Tax Incentives.
Please note that I do not have my CPA license, and cannot and will not provide any tax advice, however I will say that 26% appears to be > 22% and certainly > 0% of the total cost of the purchase and installation of a solar system.
That’s all I’ll say for now, except one more thing – Senate and Representatives capable of advocating FOR renewable energy, which would greatly benefit the state they’re in…
There are also local incentives, but those will more likely come from either your utility provider or the jurisdiction you live in. Of course, these can change quite often – at least annually, and possibly per season – so be sure to check out the following DSIRE link, as well as any local resources you’re aware of:
- DSIRE: https://suntexllc.com/database-of-state-incentives-for-renewables-efficiency-dsire/
- Example local incentive page, Austin Energy: https://austinenergy.com/ae/green-power/solar-solutions/for-your-home/solar-photovoltaic-rebates-incentives/
I hope this post helps you navigate Tax Season, or at least know the right questions to ask your CPA and/or online Tax Support network. If you like the idea of installing solar panels on your home, but don’t think you’ll be ready for at least a couple more years, please do call your local reps and ask for their support in renewables.
Renewable technology has evolved to be cheaper than ever before – and we need to deploy them if we’re going to leave the world in better shape than we found it. So if you’re not ready to “go solar” today, no sweat – please check us out in a couple of years, and be sure to call you State/City reps in the meantime to increase Federal/State/Local Tax Incentives in your area!