WHAT IS THE FEDERAL INVESTMENT TAX CREDIT?
The solar Federal Investment Tax Credit (FITC) is a dollar-for-dollar reduction against Federal Income Tax.
WHAT IS THE CURRENT PERCENTAGE OF THE FITC?
The percentage is currently on a decline. 2019 was the last year that it was 30%. 2020 marked a 4% drop which makes the current percentage 26%. In 2021, it will drop an additional 4% to 22%. In 2022, the FITC will end. Look at the graph below to see the decline.
HOW MUCH WILL I SAVE?
The average purchased solar system costs $17,760
Once you factor in the 26% FITC, that brings down the average purchased solar system cost to $13,142
That’s an average savings of $4,618.
HOW WILL I KNOW IF I QUALIFY FOR THE FITC?
If you typically owe Federal Taxes, then you most likely will qualify for the FITC, since you can offset the amount that you owe. If you do not owe Federal Taxes, then you most likely will not qualify for the FITC since there is nothing to offset.
HOW DOES THE FITC AFFECT MY SOLAR LOAN?
You can pay down your solar loan with you tax credit amount and enjoy a lower monthly payment.
It is important to note that the FITC is a CREDIT and NOT a check that you receive from the Government.
The best time to go solar is now. Take advantage of the Federal Investment Tax Credit and save more now while harnessing the power of the sun.
*We are not tax advisors and recommend that you consult with personal tax advisor for more information.