The Solar Investment Tax Credit (ITC) began in 2006 after it was put into effect by congress. Since then, the U.S. solar industry has grown by more than 10,000%! In 2015, a multi-year extension was enacted allowing homeowners and businesses to receive tax rebates on solar energy construction. Under Section 25D, homeowners can receive a 30% tax credit.
But here’s the kicker: despite the ITC being available through 2022, after 2019, the percent will decrease.
If you’ve been thinking about solar energy but haven’t made the leap yet, this year is the last in which you can receive the full 30%.
Rebates will decrease to 26% in 2020, 22% in 2021, and 10% for commercial use only in 2022.
How Does the ITC Work?
According to the Solar Energy Industries Association, homeowners are able to apply credit to their personal income taxes through Section 25D (Section 48 for commercial use).
For solar panels that are installed before 2020, the tax credit will allow a dollar-for-dollar reduction in income taxes for 30% of the cost.
What About Tax Credits for the State of Iowa?
Unfortunately, applications for installations completed by December 31, 2018 were due May 1, 2019.
However, Linn County is planning a 2019 buy-in program via Grow Solar. Grow Solar Lin County provides education and purchasing programs for residential solar installations.
Basically, the buy-in program allows for discounts due to the volume of purchase. The more residents who buy in, the lower the cost for each person who participates.
Want More Information? Grow Solar will be hosting free events through September to help you understand whether the solar buy-in is right for you. Check out the calendar below or follow them on Facebook.
- 8/27 Tuesday 6:30-7:30pm Prairiewoods Franciscan Spirituality Center with I-Renew 120 East Boyson Road, Hiawatha