How to Get a Solar Tax Credit in 2020?
Did you know that the IRS is still offering tax incentives to homeowners who switch to solar energy? Well, if you didn’t, you can still save up a lot of money when you opt to use solar energy. As a matter of fact, this is the slogan that is being used by marketers from solar companies.
This move was enforced to encourage more people to move to solar energy because it is environmentally friendly and more cost-effective. This program that is expected to end from 2022, is significantly helping homeowners save up on the installation of solar panels. For example, if you intend on installing solar panels on a 400 sq. ft. area, you can pay around $18,000. However, thanks to the tax break, you end up paying $13,000. Please be informed that these prices vary from one state to another.
There are many reasons why you may consider solar energy. It will reduce your monthly power costs and you can end up saving a lot of money instead. You will also be playing your role in making the environment a better place. Anyway enough about solar energy and its benefits, let’s look at how you can get the solar tax credit in 2020.
According to the IRS, you can get the federal tax credit irrespective of the price of the solar system installation you chose. It doesn’t work similarly to tax deduction. When it comes to solar panel installation, $1000 worth of credit remains to be $1000 irrespective of your tax rate. And should your federal taxes in 2020 be $8000 and you are eligible for $8500, you can claim the extra $500 in 2021. Check out here to understand more on how you can get a solar credit in 2020.
Kindly note that not all solar installations are eligible for tax credit. Confirm with your solar provider that their installation meets the guidelines from the IRS. This will help prevent any surprises later on.