Federal Tax Credit
Homeowners anywhere in the U.S. MAY BE eligible for the federal tax credit, which can be worth up to 30% of the total cost of your solar installation.
Under current law, the 30% tax incentive will remain in effect for solar installations completed before December 31, 2019. After that it will drop down to 26% for 2020 and 22% through the end of 2021, after which the credit is scheduled to disappear.
It’s important to keep in mind that this is a tax credit and not a rebate, so you’ll need to pay taxes in order to claim this incentive. Check out our handy explainer for more details on how the credit works and how you can claim it.
* Availability of Federal & State Tax Credits is dependent on your unique financial situation. Please consult a tax professional regarding your eligibility.
According to the DSIRE database funded by the U.S. Department of Energy, there are a whopping 147 different state-level financial incentives for residential solar available across 43 U.S. states plus Washington, DC, along with 46 incentives available from local governments!
These incentives can be worth anywhere from hundreds to thousands of dollars. For example:
South Carolina offers a tax credit of up to 25% of the cost of solar installations, with up to $3,500 claimed in a given year and the remainder carrying forward
Rhode Island provides grants of $1.05 per watt, up to a maximum of $10,000
Oregon offers a tax credit of $1.50 per watt of residential solar installed, up to $6,000 (of which $1,500 may be claimed per year over 4 years)
Iowa provides a tax credit of 15% of solar costs, up to $1,500
As you can see, you can find extra incentives to go solar in every part of the country, and it can really pay to be aware of them. You can enter your ZIP code into DSIRE to find out what’s available where you live.
If these incentives, rules, and overlapping jurisdictions seem overwhelming, don’t worry – Mosaic can connect you with local installers who can walk you through the ins and outs of the policies that may apply to you and how they can impact your solar bottom line. Click here to get started.