As the need for clean energy generation grows, the benefits of producing electricity via solar photovoltaic panels has helped assert solar power as a leader in the sector. The initiation of the Energy Policy Act of 2005, and its subsequent adaptation, has set the stage for hyper-growth within the energy industry on a national scale.
Federal incentives established by Energy Policy Act of 2005 included tax credit for residential energy property initially applied to solar-electric systems, but was capped at $2,000. However, The Energy Improvement and Extension Act of 2008 (H.R. 1424), effective January 1, 2008, included key revisions such as an eight-year extension of the credit to December 31, 2016, the ability to take the credit against the alternative minimum tax and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. This incentive was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009 (H.R. 1: Div. B, Sec. 1122, p. 46), which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008.
A taxpayer may claim a federal tax credit of 30% of the expense to have solar installed on the residence. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The credit for solar electric property is available for property placed in service through Dec. 31, 2021, based on an applicable percentage.
The IRS offers a brief overview here.
These federal solar incentives make going solar more affordable than ever before. Make your move toward a lower energy bill today and rest assured knowing that Trinity will be there every step of the way. Champion your community—follow this link and for every family you help go solar through our referral program, you get paid.