What are Federal Tax Credits for Solar Installations?
Created under the Consolidated Appropriations Act of 2021, the renewable energy tax credits for solar energy systems and other renewable energy sources.
- 30% for systems placed in service by 12/31/2019
- 26% for systems placed in service after 12/31/2019 and before 01/01/2023
- 22% for systems placed in service after 12/31/2022 and before 01/01/2024
Expires: December 31, 2023; unless Congress passes legislation to extend the tax credits. With the credit being reduced at the end of 2022 and due to expire at the end of 2023 the time to consider solar power is now.
Details: Existing homes and new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
Note: Some solar installers suggest that you can extend the credit for a new roof if that roof is due for replacement. You should REALLY talk to your trusted tax advisor before taking such action. This content should not be taken as tax advice either. Talk to your accountant/tax advisor prior to any solar purchase to determine the tax ramifications or benefits to you.
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