Act Fast to Claim a 30 Percent Tax Credit for Residential Solar Panels
Here’s a heads-up. The 30 percent residential solar credit
- drops to 26 percent for tax year 2020,
- drops to 22 percent for tax year 2021, and
- terminates in 2022.
Also, unlike the 30 percent commercial solar credit, where you can qualify for the 30 percent tax credit when you commence construction (as defined by the IRS, but easy to do), your 30 percent residential credit is granted when you place the solar property in service.
If you are thinking of the 30 percent tax credit for a solar installation on a residence you own, don’t let the time slip away, because you must have the solar property in use before December 31 to qualify for the 30 percent tax credit (dollar for dollar).
Article produced by the Bradford Tax Institute.