One of the most significant reasons people make the investment in solar is the vast financial and energy-saving benefits. Sure enough, one of the most important federal incentives of switching to solar is the ITC.
What Is The ITC?
The ITC is the Federal Solar Investment Tax Credit. According to the Solar Energy Industries Association (SEIA),
The Investment Tax Credit (ITC) is currently a 30 percent federal tax credit claimed against the tax liability of residential (IRC Section 25D) and commercial and utility (IRC Section 48) investors in solar energy property. The Section 25D residential ITC allows the homeowner to apply the credit to his/her personal income taxes. This credit is used when homeowners purchase solar systems outright and have them installed on their homes. In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit. 
Put simply, purchasing a solar system for your home or business can result in a 30% tax credit. This means California residents have the opportunity not only to save on their monthly energy bill, but also to claim a 30% deduction of the cost of their solar project on their federal taxes. Who knew those solar panels would make tax season and IRS forms just a little less intimidating?
Will There Always Be an ITC?
Although the ITC was intended to expire last year, Congress recently approved a limited-time extension. The 30% credit will remain until 2019; in 2020 it will decrease to 26%; and in 2021 to 22%. After 2023 the residential credit will be removed, while the commercial and utility credit will drop permanently to 10%.
What Does This Mean For Me?
This is all great news, because let’s face it: no one ever complained about less taxes. If you are a homeowner or business-owner interested in solar, it is best to take advantage of this federal tax credit soon! The possibility of policy changes on the federal level could affect the benefit of the solar investment tax credit.
In order to qualify for the ITC in 2017, residential clients must have their solar installed by December 31, 2017. That means it’s time to look for a solar installer!
At Green Convergence, we want to make sure you are installed by year-end to be eligible for your 30% ITC. Sign with us by October 22, 2017 so we can start scheduling your solar installation! (Please consult with your tax adviser or accountant to see if you qualify for the tax credit.)
Can I Save More?
Green Convergence wants to help you take advantage of all the financial benefits of solar. If you schedule an appointment with us (we’ll come to you, or meet us at our Valencia or Calabasas Solar Design Center) and sign by October 22, 2017, we will provide you with a $500 rebate off your system—more savings! Just click on the “Get Started” button or fill out the form below to get the process started today!