Peanut butter and jelly, coffee and donuts, bees and honey. Some things go undeniably together, but did you know that solar energy and taxes are not far from this list? If you enjoy saving money and we’ve sparked your interest, keep reading to find out why solar and taxes go hand in hand.

Using Your Tax Returns for Solar Energy

After the not-so-fun process of gathering receipts, filing taxes and figuring what half of the words on the forms mean, it’s time to decide what to do with your tax returns. Even though some people like to take advantage of this extra cash and go on vacation or a shopping spree, this TurboTax article explains that there are 12 smart things you could do with your tax refund, and one of them is focusing on making home improvements including energy efficiency measures such as solar power.

Some other benefits to solar energy are:

  • Immediate money savings on energy bills
  • Avoiding rising costs of power in the future
  • Added resale value to your home
  • Better performance than an Individual Retirement Account (IRA)
  • Solar may provide energy to your home when the power is out
  • Reduced dependence on fossil fuels
  • Alternative energy leaves a legacy of environmental sustainability to future generations

Click here to learn more about using your tax returns for solar power and other solar energy benefits.

Taking Advantage of Tax Credits

Did you know that a taxpayer may claim a credit of 26% of qualified expenditures for a system that serves a dwelling unit located in the United States?

There are a few differences between residential and commercial tax credits. For residential tax credits:

  • Installs completed in 2019 may receive the 30% federal tax credit.*
  • Installs completed in 2020 may receive a 26% federal tax credit.*
  • Installs completed in 2021 may receive a 22% federal tax credit. 2021 is the final year for the federal tax credit for residential installs.*

For commercial tax credits:

  • Installs completed in 2019 may receive the 30% federal tax credit.*
  • Installs completed in 2020 may receive a 26% federal tax credit.*
  • Installs completed in 2021 may receive a 22% federal tax credit. In 2022 and beyond, the federal tax credit will drop to a permanent 10% for commercial and utility projects.*

*Tax credit information subject to change. Creative Solar USA does not warrant or guarantee rebates, grants, credits, awards, or ROI. See your tax professional to assess which financial advantages will apply to your installation.

Because the end of 2019 marks the end of the highest percentage you can get for the federal tax credit (30%), now is definitely the time to act!!

In addition to all these financial benefits, solar panels will continue to generate and save money on your energy bills for more than 20 years, as homeowners start saving on utility bills almost immediately after installation. Why would anyone want to skip on these savings?

Contact Us Today

Creative Solar USA is a Georgia-based, turn-key installer of innovative solar panel systems, dedicated to alternative energy solutions for your home or business. Become a member of the Creative Solar USA community. We’re your solar power resource long after the installation is complete because we don’t just build PV systems for our clients – we build relationships.

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