To get the best tax credit in 2019, visit the full 2019 Guide to Solar Tax Credit and Incentives for more information.
Solar Tax Credit Details
2019 is a very important year pertaining to residential energy incentives. In 2018, SolarTech installed five megawatts of residential and commercial energy. SolarTech anticipates installing eight to ten megawatts in 2019.
As you can see from the example in the video, getting a solar energy system installed in 2019 grants the maximum 30% solar tax credit before stepping down to 26% in 2020. The federal government will be offering:
- Only solar systems that are placed into service or commence construction prior to 12/31/2019 will be eligible for the 30% investment tax credit.
- The tax credit amount will step down to 26% for solar PV systems put into service between 01/01/2020 and 12/31/2020.
- Systems put into service between 01/01/2021 and 12/31/2021 will be eligible for a 22% solar tax credit.
- Systems put into service between 01/01/2022 and 12/31/2022 will be eligible for a 10% solar tax credit.
- After 01/01/2023, the solar tax credit will no longer be available for residential solar installations.
- Unlike the Residential Renewable Energy Tax Credit, the Business Energy Investment Tax Credit will still get 10% for commercial solar energy systems placed into service beyond the end of 2021.
How Does The Federal Tax Credit Work?
This tax credit allows up to 30% of the total cost of the system in 2019. The credit can be used all at once or you can utilize the credit over multiple years. For example, if your solar panel system costs $18,000, a 30% tax credit would be $5,400. If you owe $4,000 in taxes for 2019, your tax bill will be reduced to zero, with a remaining $1,400 tax credit for your 2020 and future returns.
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