Federal Government Extends Solar Investment Tax Credit for 2 YearsDecember 28, 2020 9:13 pm
The last week of 2020 starts with some positive news for the future of solar energy and battery storage in America: President Trump has signed the federal spending package with all solar-related parts intact, including the extension of the 26% investment tax credit (ITC). What does that mean for the average person in Wisconsin?
Let’s say you have decided to invest in solar with a system that costs $20,000. The 26% ITC would give you $5,200 in credit off your income taxes for the year that your system was installed. Originally planned to step down to 22% in 2021, the ITC will remain at 26% for projects that begin construction in 2021 and 2022, step down to 22% in 2023, and down to 10% in 2024 for commercial projects while the residential credit ends completely.
The extension to the ITC is excellent news for the consumer and the American solar industry as a whole. SEIA (Solar Energy Industries Association) Estimates The residential and commercial solar ITC has helped the U.S. solar industry grow by more than 10,000% percent since it was implemented in 2006, with an average annual growth of 50% over the last decade alone.
A key part of the Federal Investment Tax Credit is the word investment. When you choose to invest your hard-earned money into solar energy, choose to invest with a company that has been trusted in Wisconsin since 2003 and ranked as one of the top 100 installers in the country: Arch Electric. Contact us today to start your solar journey!Tags: 26% tax credit, commercial solar, FITC, home solar system, residential solar, solar investment tax credit
This post was written by archelect