Deciding to put solar panels on your property is no small decision, and one of the first and largest factors that you are likely considering is the finances of it all. One huge benefit to going solar right now is the Solar Investment Tax Credit, ITC for short, which has been around since 2006. This provides a 26% tax credit for both qualifying residential and commercial properties that install solar panels, and though it was set to expire at the end of last year, it has been extended until the end of 2022.
What does this mean for you? And what does this have to do with the economy?
As long as you own your solar panels and aren't renting them, you are eligible to receive the Solar Investment Tax Credit of 26% of your solar project. We can help calculate your savings based on your home or business and what your specific energy production needs are. This tax credit is a dollar-for-dollar reduction in the income that you are reporting to the government that you will file at tax time rather than a discount given at the time of the project. As an example, if you pay $10,000 for your solar energy system, you'll be getting $2,600 back after you file your tax return. And since the credit doesn't have a cap on it, it doesn't matter how large your project is, you will still be able to receive a 26% tax credit.
This credit will remain at 26% until the end of 2022, then it will drop to 22% for all projects that begin construction in 2023.
Now to explain how this will have a direct impact on our nation's economy.
As stated above, the solar Investment Tax Credit was enacted in 2006 and since that time the solar industry has boomed, leading to the investment of billions of dollars in the US economy and creating thousands of jobs, all in less than 20 years. Those jobs will continue to multiply and investment in solar will continue if solar panels continue to be installed everywhere.
Additionally, we have been a family run business serving Northwest Arkansas for over the last 40 years. We know and love this community deeply and we plan on being here for many more decades to come. By working with us, you are working with someone who cares as much about Northwest Arkansas as you do and who has a strong commitment to the benefits of solar energy and how it can improve your life on an individual level, and the lives of those around us as more people switch to sustainable energy.