If you want to save the most money on solar panel
installation, you should take advantage of every available financial incentive for adopting photovoltaic power.
The federal investment tax credit (ITC) offers the biggest opportunity to save. But if you live in Utah, you can cut your photovoltaic costs further with the state-level solar tax incentive. Here’s what you need to know to gain the maximum benefit from both programs
Saving with the Federal Solar Tax Credit
Claim the federal ITC, and you can reduce your income tax liability by 30 percent of your solar panel installation
costs. However, to see those savings, you will need to begin your project by December 31, 2019.
If you wait, you can still claim the federal solar tax credit. However, the amount will be smaller. Start your photovoltaic project next year, between January 1, 2020 and December 31, 2021, and you will be eligible for a 26 percent credit. Hold off another year, and the credit drops to just 22 percent. Wait any longer than that, and you won’t be able to take advantage of the federal ITC.
Saving with the Utah Solar Tax Credit
With the Utah solar tax credit, you can claim 25 percent of your total solar panel installation costs when you file your income taxes. The savings cap is $1,600 – but that’s in addition to, not instead of, the federal ITC.
But to gain the biggest benefit, you will need to install your solar panel system by the end of 2020. Wait until 2021, and you will only be eligible for a maximum of $1,200. In 2022, the amount drops to just $800, and the credit for photovoltaic installation in 2023 falls to $400. After that, there will be no Utah solar tax incentive.
Start Planning Your Solar Panel Installation Soon
As both the federal and state tax incentives are gradually decreasing – and both will be gone in a few short years – you will need to begin your photovoltaic project soon to save the most money.
A recent change to the federal ITC means your solar panels do not need to be in operation by the end of 2019 to claim the full tax incentive. You can also qualify by paying at least five percent of your photovoltaic installation costs by the deadline. But seeing how it’s already September, you don’t have a lot of time.
When you’re ready to start planning your photovoltaic project, call on the professional team at Greenify Energy Savers.
At Greenify Energy Savers, we make installing solar panels easy. And when you work with us, our team will help you reduce your home energy consumption – that’s a part of our process, as boosting your household energy efficiency reduces your photovoltaic costs and helps you reach the payback point sooner.
For more information on tax credit savings for solar panel installation in Utah, contact Greenify Energy Savers
and schedule a free consultation today.