Tax Credit Ending

Tax credit ending! Tax credit was cut from 30% to 26%. It will go be reduced again to 22% next year, and then it’s gone!

Fortunately, if you haven’t begun your solar project yet, The Federal Solar Tax Credit (also known as the Investment Tax Credit or ITC)is still available to you. The tax credit will “sunset”. This means it will gradually decrease in the percentage of the project’s total cost applied to your tax bill over the next two years.

  • 2020 projects are granted a 26% tax credit,
  • dropping to 22% in 2021,
  • 10% in 2022,
  • and zero for residential solar after that.

As far as commercial installations go, the commercial solar tax credit is the same as the residential tax credit up until the end of 2021. After January 1, 2022, the commercial and utility solar ITC will reduce and hold at 10% indefinitely. If no new legislation is implemented, the ITC will disappear for residential projects in 2023.

While a 4 percent drop may not seem like much, it means thousands of dollars in savings when you’re investing ina solar panel system. For some, the difference between claiming the ITC in 2020 and 2021 may be less than $1,000. But the larger your system is, and the higher the cost of solar is in your area, the more you stand to lose from the ITC decrease.

Most importantly, the solar tax credit helps you save money even during the installation of the solar system. You start saving money from day one.

Installation costs include the system, labor, fees, taxes and certain corrective costs to enable installation of the system. Even the fees that go into consultations with a professional solar energy expert count as part of the installation costs.

How is the ITC calculated?

The credit is a dollar for dollar income tax reduction.

This means that the credit reduces the amount of tax that you owe.You simply subtract your credit amount from the total tax the IRS says you must pay.

How do you qualify?

You must meet a few requirements during the tax year:

  • You mustinstall it by Dec. 31, 2020.
  • You must own and not rent the home or business -a rental property does not qualify.
  • You must own the solar panels. Leasing disqualifies you.

You claim the investment tax credit for solar when you file your yearly federal tax return, by completing IRS forms 1040 and 5695 (please consult your accountant during so).

To get a free estimate on a home improvement project and see if you qualify for the ITC, visithttps://floridasmartenergy.com/

The planet is in critical danger, solar is one way how you can contribute to curb that

Our planet’s temperature is rising at an alarming rate, and faster than we initially thought. Everywhere across the globe there are severe droughts, flooding, and intense storms. These extreme weather patterns cause chaos in the environment, economy, and society. It has become a part of the human experience and will be for years to come.

Unless we act now, by the year 2030 there will be even more extreme drought, wildfires, floods and food shortages for hundreds of millions of people due to the rise in temperature from dangerous greenhouse gas emissions. Entire countries face catastrophic consequences from the changes in our planet’s atmosphere and ecosystem. There is no room for argument; sustainable energies like solar power reduce air pollution and get our planet back on track for future generations. The time is now to reduce carbon emissions.

Carbon dioxide from burning toxic fossil fuels like coal, natural gas and oil is the worst offender; it is responsible for most of the pollution we breathe. CO2 remains in our climate system for a very long time. How long? Thousands of years states the Environmental Protection Agency (EPA).

Solar plants produce zero emissions or waste. That pretty much says it all.

Solar Power Makes a Global Difference

We can state the obvious: power from the sun is free, sustainable, clean, renewable, and it’s not going away. Better yet? There are no dangerous emissions from energy generated through solar panels.

On the contrary, fossil fuels are not renewable. They are expensive to produce, they are damaging to our environment, and they’re finite.

Solar panels do not contaminate, they generate renewable energy, last over 25 years, are recyclable, don’t produce any gas emissions.

Here are five of the environmental benefits of renewable solar energy.

  1. Reduces air pollution
  2. Reduce water usage
  3. Reduces dependence on nonrenewable energy sources
  4. Improves humanity’s health in the long run
  5. Helps fight climate change

Making a Positive Change with Solar Energy

It is not only up to governments to fight for the future of our planet. Everyone can make a difference. Sustainable energy companies, homeowners, landlords, utility companies… together we can implement solar panels one rooftop at a time. This is how the environment will get rid of carbon emissions and our planet will get a healthy, bright future.

Installing solar panels, using solar lights and solar powered home products, all help towards reducing carbon emissions. Maybe the reductions are minimal, but every home counts. Done at large scales, it can really make a long-term difference.

Whether you would like to make the world a greener place or you simply want to save money on your utility bills, Smart Energy Florida is here to help you.