Take Advantage of the Federal Solar Tax Credit in 2020
The federal solar tax credit, also known as the Federal Investment Tax Credit (ITC) is on a scheduled sunset, which began this year. As you may know, on January 1, 2020, the ITC dropped from 30% to 26%. At the beginning of 2021, it is scheduled to step down again. On January 1, 2021, the ITC will decrease to 22%. After 2021, there will no longer be a tax credit for residential solar projects.
In order to get in on the schedule for 2020, we suggest that you sign your contract as soon as possible.
When should your solar system be installed?
For homeowners, this means the solar energy system must be completed by December 31 of each year to be eligible for the tax credit. In other words, to receive this year’s 30% tax credit, projects must be completed by December 31, 2019.