Defend the ITC

As of right now, the Investment Tax Credit is set to “step down” at the end of 2019. Read our blog to learn why it’s important that we defend the ITC and have it extended.

What is the ITC?

The Investment Tax Credit (ITC), otherwise referred to as the Federal Solar Tax Credit, allows you to deduct 30% of the total cost of solar panel installation from federal taxes. This tax credit applies to both residential and commercial systems alike. Additionally, there is no cap on the value of the systems.

The ITC was established by the Energy Policy Act of 2005 and was set to expire at the end of 2007, but due to its popularity and effectiveness, Congress has extended it several times. Currently, it is set to gradually expire starting in 2019 and will cease to exist for residential systems by 2021. See below for a diagram of the changes:

Why the ITC is Important

The ITC is one of the most important federal policies to support the implementation of solar energy systems on a wide scale in both residential and commercial arenas. According to the Solar Energy Industries Association, since the extension of the credit in 2008, solar prices have fallen year after year. This progress has proven that long-term incentives can increase growth while reducing prices and creating more jobs in the solar energy industry.

While Congress works to solidify an extension to the credit, the last chance to take full advantage of the tax credit ends in 2019. In order to be fully compensated for the credit, you must have your solar panels installed by December 31st, 2019. To learn more about the rules and regulations regarding the Investment Tax Credit and to see how you can take full advantage of the financial incentives when installing your new system, contact HES Solar today!