How the Federal
Tax Credit Works
With recent advancements in solar technology, home and business owners can now produce their own electricity instead of depending on utility companies. Through the end of 2020, the Federal Tax Credit can potentially reduce the cost of your solar panel installation by up to 26%! The tax credit will decrease over the next few years, deducting 22% in 2021, so take advantage now!
Business owners can also take advantage of the MACRS depreciation (if qualified) for federal and state which becomes an additional incentive. Adding together the tax credits and depreciation, the cost of solar can be reduced by as much as 50%. This makes solar an attractive addition to your business as it adds value to the property while reducing utility expenses. Because solar reduces your electricity cost, you are essentially using utility savings to pay for your solar energy system!
NOTE: We’re not tax professionals, so we don’t give tax advice. The material made available on this page is used to explain the federal tax credit and is not designed to specifically solve any unique issue. Not everyone will be eligible, so please consult a tax professional before filing your tax credit.