A federal tax credit is the government credit system where a percentage of a residential solar installation cost can be offset against IRS taxes for the following year. It’s essentially a dollar-for-dollar reduction in the amount of income tax you would otherwise owe…
Meaning, if your tax liability was $5,000 for the year and you have a credit of $2,000, you would pay only $3,000.
Example: Throughout 2021, the credit has been held at 26%. So, figure your home’s solar electric PV installation may cost $20,000, your tax credit would be:
$20,000 x 26% = $5,200 rebate
(Major Tax credit in your hands)
If you’ll ever consider going Solar (most people eventually will), now is the time to do it — while you can still receive these generous benefits and the highest tax credit possible!
Note: In order to receive this tax credit, your Solar system MUST be either financed to own (NOT leased), or bought in cash.