11 Oct The Solar Panel Tax Credit Disappears in 2022!
The appeal of solar power is massive, with nearly 150 million panels already established in the continental US. Solar panels are cleaner and much more cost effective over time. You’ve probably heard of people going “off the grid” with the help of solar panels. Needless to say, those with an eye toward the environment probably have solar power on their radar. The solar panel tax credit is also a big selling point.
The 30% Tax Credit
If you’re considering your own set of solar panels, the time to act is now. As of the writing of this post, there exists a 30% tax credit for the establishment of solar panels on your property.
That’s a number big enough to turn heads!
However, that number is only applicable to the panels themselves, not the fixtures or roof that would support them (regardless of whether they’re necessary or not). If you were to have solar shingles on your roof, then those shingles would be deductible as well.
Make sure to only claim the tax credit that you’re due, or an audit could come your way!
Why Should I Take the Solar Panel Tax Credit Now?
You’re probably thinking that a 30% tax credit is too good to be true.
In a way, you’re right.
In just a few years, the solar panel tax credit will no longer exist. By the end of this year (2019), the credit drops down to a rate of 26%. After 2020, it goes down even further to 22%. Finally, after Dec 31, 2021, the credit will no longer exist.
That gives you just over two years to claim a tax credit on solar panels!
If you want to get solar panels AND claim the tax credit, do it now. You could wait a couple of years and still get a nice credit, but to get the most money back, you’ll have to install them before December 31 of this year (2019). Keep in mind that the panels must be in service to claim the credit as well, so get moving quickly!
If you have any questions about tax credits or want any general tax advice, be sure to call us at 614-524-4888!