Taking advantage of solar tax breaks puts thousands of dollars back in your pocket, allowing you to recoup your investment much faster.
Tapping into the sun’s power might seem like an expensive endeavor. But with the tax credits, exemptions and rebates available, a solar energy installation can be surprisingly affordable. Thanks to the financial incentives, many Intermountain West homeowners and businesses see savings of 50 percent or more on their photovoltaic investment costs.
Which solar tax breaks can help you save on a PV system installation?
Federal Solar Investment Tax Credit
If your photovoltaic system is up and running by the end of 2019, you’ll be eligible for a federal investment tax credit (ITC) in an amount equal to 30 percent of your PV component and installation costs. The federal ITC cuts your tax bill dollar for dollar, and the credit has no limit.
State Solar Tax Credits
Individual states also offer tax breaks for residential and commercial solar installations. The savings can be substantial, but unfortunately, state tax credits aren’t available everywhere in the Intermountain West.
State Solar Tax Exemptions
In some Intermountain West states, PV installations are eligible for a full or partial sales tax exemption. This financial incentive reduces the upfront cost of investing in photovoltaic power, as it means you don’t have to pay taxes at the time of purchase.
Property tax exemptions are also available in some areas.
Other Financial Incentives for Going Solar
Money-saving rebates are offered by some utility companies, municipalities and non-governmental organizations in some parts of the Intermountain West. These can help reduce photovoltaic costs by hundreds or even thousands.
In addition, net metering can be considered a strong financial incentive for going solar in some Intermountain West states. Getting paid for excess electricity sent to the utility grid helps businesses and homeowners achieve a quick return on their photovoltaic investments.
How to Find Details on Solar Tax Breaks and Financial Incentives
Finding information on the solar tax breaks, rebates and other financial incentives offered in your area is easy — just check the Database of State Incentives for Renewables & Efficiency, more commonly known as DSIRE.
A free resource funded by the U.S. Department of Energy, DSIRE maintains a comprehensive, up-to-date directory of financial incentives for investing in photovoltaic power. Just click on your state for a complete list of the offers available.
You can also ask your professional photovoltaic contractor for details on your savings opportunities.
Plan your solar installation with Intermountain Wind & Solar, and you’ll get a customized binder with all the paperwork needed to claim all the available federal, state and local tax breaks and financial incentives for photovoltaic adoption. And we can even help you complete the application forms.
As the leading residential and commercial solar provider for Idaho, Utah, Nevada, Colorado and Wyoming, the Intermountain Wind & Solar team knows how to help you make the switch to photovoltaic power more affordable. Contact us today and schedule a consultation to discuss solar tax breaks, financial incentives and savings opportunities for PV installation.