Is There Still Time to Get the Solar Investment Tax Credit for 2020?

The Solar Investment Tax Credit, or ITC, is one big benefit of installing solar power in your home or business. There are yearly federal tax benefits available when you switch to solar for residential, investment, and commercial properties. In addition, there may be incentives at the state level, and from local power companies. But, is it too late this year to begin a project and still reap the federal tax benefits?

Deadline for the Commercial Solar Tax Credit

If you own a commercial or investment property, there is still time to lock in the 2020 solar tax credit. Property owners have until the end of the year, December 31st, 2020, to start their solar project. You also must make at least 5% progress into your project before that date. Meeting both these qualifications will lock in the 26% tax credit available. 

Landlords who install solar systems get increased property values, depreciation expenses, federal tax credits, plus rebate income in some areas. Tenants paying their own utilities will have lower electric bills, which property owners can use as an incentive to attract quality tenants, or enjoy charging higher rents to reflect the lower utility bills. 

Residential Solar Tax Credit Guidelines

The rules for residential solar tax credit are a little different. In this case, federal guidelines state that work must be complete by December 31st, 2020. Since most utility companies take four to ten weeks to approve a solar installation, realistically a system would be fully completed in early 2021. The solar tax benefit would then be credited on your 2021 federal returns at, the 22% level which will be in force then. 

Learn More About the Solar Investment Tax Credit

Are you ready to take your power back from the utility company, enjoy the tax benefits and savings of solar power, and help create a more environmentally sustainable future? Give us a call immediately to get solar on your home or business at 720-443-1239, or visit us here for a free consultation. Commercial and investment property owners still have time to design and install a solar system and lock in the 2020 solar tax credit.