Solar Energy Tax Credit Reduction Coming
By Woods & Durham, Aug 18 2017 04:00PM
Currently any taxpayer that purchases a solar energy system is allowed a tax credit of 30% of the cost. Starting in tax year 2020 this credit will be reduced to 26% of the cost. In 2021 it will again decrease to 22%, with the final expiration of this tax credit being December 31, 2021. So, if you are planning on purchasing a solar energy system, get it before time runs out on this tax credit.
This tax credit is for solar energy systems which include solar water heaters and solar panels. The credit is allowed on new or existing homes and is allowed for a taxpayers principal residence or second home. Rentals do not qualify.
If you have any questions regarding the solar energy tax credit please reach out to us.