In case you haven’t heard, solar tax credits will be reduced at the end of 2019 for homeowners and businesses. If you haven’t already taken advantage of the current tax rebates, it might be worth investing in a solar system for your home or business before the current rebates expire. Sandbox Solar is your local Fort Collins solar company, and we’re here to help you understand the ins and outs of solar tax credits for solar in Fort Collins.
In 2005, the federal government began to allow both residential homeowners and businesses to deduct 30% of the total cost of a solar system install from their federal taxes with no cap on the total amount spent. This tax credit, known as the Investment Tax Credit (ITC), saves our customers as much as $9,000 on average on the total cost of the system. It was originally set to expire in 2007, but due to its popularity, the ITC has been renewed several times over. Currently, the ITC is set to expire fully in 2021, but beginning in 2020, there will be noticeable changes.
Sandbox Solar, a Fort Collins solar provider, is here to explain what will happen to solar tax credits in 2020:
Changes to Solar Tax Credits in 2020
During the entire ITC history, residents could deduct the full 30% of the cost of their solar system install from their federal tax filings. However, beginning in 2020, homeowners and businesses alike will now only be able to deduct 26% of the total cost of the system.
Changes to Solar Tax Credits in 2021 and Beyond
Beginning in 2021, commercial and residential solar projects will only be eligible to deduct 22% of the total cost of the solar system investment. After 2021, residents will no longer be allowed to deduct any of the cost of their solar system from federal tax filings. In 2022 and beyond, commercial solar projects will be allowed to deduct 10% of the total cost from federal filings.
Solar in Fort Collins, CO Tax Credits
Additionally, if you live in Fort Collins, Colorado, you are also eligible for a $1,500 solar rebate from the city. If you live elsewhere in Northern Colorado, it is very likely that you will qualify for other city rebates or tax credits.
Get Started on Your Fort Collins Solar System
If you’re ready to take advantage of the full solar tax credits before they are reduced at the end of 2020, let’s get started on your project! Sandbox Solar is your local, Fort Collins solar provider, serving all of Northern Colorado. Please contact us today for a free quote or to learn more about how to take advantage of the full solar tax credits while you still can. We’re here to help you with all your solar in Fort Collins, Colorado needs!
