How To Claim the Most Solar Tax Incentives Before They End In 2019
If it was not for solar panel energy systems, getting rid of the expensive utility rates would not have been possible. Homeworkers and owners can now easily control their electricity consumption and costs by switching to solar; this is definitely the best gift you can give to yourself!
The advantages and benefits provided by solar energy are not limited to protecting the environment only. In fact, various economic advantages and incentives come along with it for residential and commercial solar panel energy. The Federal Income Tax Credit is also a part of this system! You must understand the basics of the solar investment tax credit if you are finally planning to opt for it and learn how you can qualify and claim for your tax incentives when you switch to solar energy.
Since the best incentives are ending by the end of the year 2019, you should make up your mind as sooner as possible and enjoy up to 30% of the total amount of your solar system installations; a bouquet of thanks to the federal tax credit policy!
So what really is the Solar Investment Tax Credit?
You can always claim your federal solar investment tax credit (ITC) for up to 30% of the total cost of your solar panel system on your federal incomes taxes. The year in which you install your solar panels is the year you can relish in this tax credit. To make it easier for you to understand, the tax credit you collect from your solar panels is the amount reduced from your federal incomes tax and the best part is, there are no limitations to how much tax credit you receive!
Even though the tax credit remains 30% throughout the year 2019, the percentage has been predicted to drop every following year. This means, by 2020 it will drop to 26%, then 22% in 2021 and in 2022, it has been announced that only a tax credit of 10% will be given to commercial solar arrays! Unfortunately, by 2022 residential tax credits will not be entertained.
How To Ensure Your Eligibility?
You should be eligible for this federal tax credit if you install a solar panel system in between 1st January and 31st December, in the same year as your proposed tax year. It is not necessary for your solar panel system to be entirely installed and function perfectly for you to receive and enjoy your tax credit. You are legally eligible to claim your tax credit in the same year in which the structuring has started on your installation.
However, it is important for the solar array system to be owned by you in order to claim your tax credit. It is not possible for you to receive a tax credit if your solar panel system is rented. Even though you can claim the tax credit once, you can claim the credit until you own the system.
How To Claim Your Solar Credit?
Coming straight to how you can actually claim your tax credit; it is when you file federal taxes at the end of the year you can claim your solar panel array investment tax credit. All you have to do is give a heads up and notify your tax professional about your solar system and carefully mention all the other related expenditure cost while the installation construction process. The tax professional will then return your investment tax credit information. In case you are not in contact with any tax professional to take in account your taxes and handle them, it is highly suggested that you take some time out and complete your research. Once you have all the necessary information regarding the data required to be submitted by the IRS you can confidently handle your own taxes.
Just for a quick reminder; you are running short on time to install a solar panel system and to enjoy the benefit of earning a tax credit up to 30% by the end of 2019! In order to prevent you from missing out on this amazing experience, we have decided to offer you a free of cost solar consultation with a professional solar expert! So without wasting any further time, quickly switch to solar energy systems and enjoy receiving your tax credit.