When you switch to a Solar Energy System or make any energy saving improvements to your home, residential and commercial owners are allowed a credit of up to 30 percent of the cost of the system, as well as installation.
The credit is 30 percent from 2016-2019, but then continually drops to 26 percent for 2020, 22 percent for 2021, and 10 percent from 2022 and beyond.
The new 2018 legislation allows owners to claim the credits as soon as the construction of the system is complete, as long as it’s operational by December 31, 2023.
The tax credits are nonrefundable, but can be carried forward for future years.
There are also Non-business Energy Property Credits available for installing qualified energy-efficient products in the taxpayer’s main residence. This credit is good for 10 percent of the purchase price of the product. Some of these products include: insulation, exterior windows, exterior doors, water heaters, heat pumps, furnaces, central air conditioners, certain roofing materials, and others.
For more information about qualifying expenses, please contact Manasa Vangala at email@example.com or 314.576.1350.