Using the Investment Tax Credit for Solar Power with Your Business

Using the Investment Tax Credit for Solar Power with Your Business

Ariel View of Solar Panels on Business Buildings

The Federal Investment Tax Credit (ITC) is a major benefit of deploying solar panels for your business. Whether your a law office in San Antonio or a pest control company in Baltimore, when you install solar panel systems for your business, you’ll get a federal tax credit of 30% of the gross system cost.

Important Facts About the Investment Tax Credit for Solar Power

  • The Federal Investment Tax Credit offers a 30 percent tax credit for solar systems on commercial (Section 48) or residential (Section 25D) properties through the end of 2019.
  • The Omnibus Appropriations Act of 2015 included an extension of the residential and commercial Federal Investment Tax Credit, changing the “placed-in-service” standard for qualification to “beginning of construction” for projects started up until the end of 2023.
  • The amount you can claim on your taxes for new solar systems will begin to decrease gradually. For systems that begin construction in 2020 it drops to 26%, in 2021 to 22%, and from 2022 through 2023 10%. The continuing drop in the overall cost of solar energy systems offsets this decrease; however, the sooner you start your solar project, the more you will save with the Federal Investment Tax Credit.
  • The solar Federal Investment Tax Credit has been an integral part of the increase in solar installations by more than 1,600 percent since first implemented in 2006. This is a compound annual growth of 76 percent!
  • The continuation of the Federal Investment Tax Credit through 2021 offers a practical incentive for businesses to develop long-term solar investments that can help them to remain competitive and increase their NOI.

Simply put, using the Investment Tax Credit for adding solar power to your business is a win-win. It helps you, it helps the environment, and ultimately, it helps your customers and community – because when you save money, so do they. This is why installing solar energy systems for your organization is a powerful idea. For more information, simply contact Go Smart Solar to get you started on your new solar energy project!