What Kind of Tax Breaks Can I Get For Solar?
We're grateful to V. L. Hendrickson for sharing the news about tax breaks.
Click HERE to read this article in it's entirety.
Since this article was published, the Federal Tax Credit has been modified to 26%
"Q. I live on Long Island, New York, and I am thinking about installing solar panels on my home. Do I get any property tax breaks if I do?
A. There are tax breaks for those who choose to go solar in Long Island, but they are not property tax breaks.
Instead, the tax advantages come through credits on the state and federal levels, according to Christina Mathieson, team leader and CEO at Keller Williams Realty of Greater Nassau, which is based in Garden City, New York.
First, solar panel owners can get a 30% tax credit—known as an investment tax credit (ITC)—on their federal income taxes, said Ms. Mathieson, who is certified as a LEED Green Associate and who leads trainings for agents to learn about residential solar energy systems."
“Let's say your solar system is $30,000,” Ms. Mathieson explained. “So 30% of that $30,000 would be $9,000. As long as you've paid $9,000 in federal taxes in that tax year, you can get that whole $9,000 back.” Ms. Mathieson also advised that homeowners considering purchasing a solar system should consult with their CPA regarding their specific tax situation.
However, the federal solar tax credit is scheduled to be reduced over the next few years, according to a statement from the Department of Energy. The credit is set to decline from its current 30% value to 26% by 2020, 22% by 2021, and 10% thereafter.
Projects that start between now and the end of 2023 are eligible for the percentage of the credit applicable for that year, according to the Department of Energy. For example, an installation that started in 2019 but wasn’t completed until 2020 will still qualify for the full 30% credit. Even if a deposit is placed in 2019, but the work isn’t done until 2023, the homeowner can claim the credit.
The federal credit is for those who own, not lease, the solar system at their residence, she added. But both those who own and those who lease are eligible for the state credit.
Christina Mathieson proudly serves her clients as a Realtor. She specializes in pricing strategy and marketing the value of high-performing and solar-powered homes for maximum sales price. Christina works with buyers, sellers and investors.
Contact Christina at ChristinaMathieson@me.com