Update: As of 28 December 2020 the federal tax credit for solar has been extended. This article has been updated to show the new phase out dates.
Why you should act now
The federal tax credit, known as the Investment Tax Credit (ITC) for solar is currently 26% of the price paid for the purchase of a qualifying solar system. But starting January 1, 2023, the solar ITC is scheduled to drop to 22%. In order for a solar system purchase to qualify and be subject to the 26% solar ITC, a purchased solar system must have begun construction by December 31st, 2022. Because of that, we recommend that those interested in purchasing a solar system do so as soon as possible.
Help save the federal tax credit for solar
Recommended: Get professional tax advice
You should contact a qualified tax expert and consult with them. Neither Freedom Forever’s family of independent authorized dealers nor Freedom Forever itself can give you tax advice. A qualified tax professional will understand your situation and be able to give you the most relevant advice.
How long does it take to get permission to operate?
It can take several weeks after a system is installed to get permission to operate. After installation, a solar system must be inspected by the local municipality to ensure that it is up to code before it is allowed to operate. Should there be anything that needs to be fixed that is revealed in that inspection, a second inspection would be scheduled. Because of that, it’s a good idea to get solar installed as soon as possible.
The Solar Energy Industry Association (SEIA) is fighting the solar ITC phase-out
The SEIA launched a Successful lobbying effort to stop the solar ITC from being phased out. But lobbying alone isn’t enough. If you want to help extend the solar ITC beyond 2024, you can do that by calling your elected representative’s office. You’ll be connected with an office staff member. Let them know you are a constituent and that you’d like them to prevent the ITC for solar from being phased out. That staff member will note the reason you called and they will inform your representative. If enough of our elected representatives hear from their constituents, they may act to save the solar ITC.