Using the Investment Tax Credit for Solar Power with Your Business
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!