Solar Tax Credits
Meridia Solar Company is Dale City, VA’s number one provider of Solar services to both commercial and residential properties! We are here to support you in every way, providing premium standard setup and installation services alongside assisting you to benefit from the Tax credits you are entitled to. As experts in all things solar, we are pleased to offer advice and support so that this process is as ideal as possible for you! Our team can assist you with figuring out what you can benefit from and how to do so!
What are Tax Credits?
A tax credit is a reduction that you are entitled to on the amount of income tax you will pay at the end of the financial year. It is also known as an Investment Tax Credit or ITC. As the government is pushing the installation of solar panels, they offer an incentive in the form of a helpful reduction from the taxes that you will pay when you enlist Solar Panel Installation services that year. You will receive a dollar amount that can be subtracted from the overall amount you will owe so that your tax burden is reduced!
All About the Solar Tax Credit
Solar Tax Credits have been put in place to encourage people to enlist solar power on their properties. There are specific requirements in place as to what needs to be undertaken to benefit from the credit, but options are available for everyone making the transition. It can be claimed on a percentage of the cost that you will pay for your Solar system, including the Solar panels themselves, the cost of installation and labor fees, and any other certification, etc. that you are required to spend on. For all systems installed between 2022 and 2023, this tax credit is at 30%. After 2033 it will lower to a 26% tax credit.
Who is Entitled?
There are several criteria that must be met in order to claim the Solar Tax Credit. In general, most people that we work with are entitled to benefit from it. Firstly, this must have been the initial installation of your solar PV system in your USA property between January 1, 2017, and December 31, 2034. You can purchase the system either outright or through financing but you must own the system yourself (and not be leasing it). Finally, the system must be new or being used for the first time. The precise wording is for the ‘original installation’ of the equipment and systems.
Aspects that are Included
The Solar Tax Credit is fantastic in that it covers you comprehensively for every element of your solar panel installation. It can be claimed on all aspects including the solar panels themselves, any other Balance-of-system equipment such as wires, inverters, and mounting pieces, and any batteries or other energy-storing devices. You can also cover all labor costs and any inspection costs or other fees. There is no maximum amount that can be included.