Guiding You Through the “Need-to-Knows” for the 2021 Solar Federal Tax Credit
Congress closed 2020 with a bit of good news for those interested in solar energy options: they passed a two-year extension of the federal tax credit for solar power. Our team at Solar Power of Oklahoma is excited about this continued effort to clear the path for clean energy. As we work to promote access and affordability of solar energy options across our great state, we are answering some common client questions regarding this news. Here’s what consumers need to know about the tax credit:
What is the federal solar tax credit?
The federal solar tax credit, also known as the investment tax credit (ITC), allows owners of solar energy systems to deduct 26% of the cost of solar equipment, labor, sales tax and certain related costs from federal taxes. This dollar-for-dollar credit benefits both commercial and residential customers who own a solar energy system through cash payment or financing.
When can solar energy owners take advantage of this opportunity?
Owners who purchase systems through the end of 2022 are eligible for this tax credit. Owners who don’t have enough tax liability to claim the entire credit in one year can roll over the remaining credits into future years as long as the tax credit is still in effect.
How do I know if solar energy is a good option for me?
Solar Power of Oklahoma has helped hundreds of Oklahomans add value to their homes and create long-term savings through solar energy systems. Our first step is to make sure solar energy is a smart option for each customer. Our team of Solar Advisors is always available to determine if solar energy is a good fit and help determine federal solar tax credit eligibility. Call (405) 254-7807 to learn more. You may also find answers to frequently asked questions (FAQs) page.
This blog is for information purposes and does not constitute professional tax advice.