Tax credit renewal is the new hot topic in the President’s budget proposal. It was announced that this bill would increase a solar tax credit for those who claim their property. This is excellent news for homeowners interested in solar panels and business owners who want to reap the benefits of solar energy as well as tax credits. A tax credit is a great way to reduce your income tax bill. For example, if you claim a $1,500 federal tax credit, your federal income taxes due will be reduced by $1,500. This can be a huge help when it comes to paying your taxes!
1). The New Bill Set on Tax Credits for Solar Panels
Those who install a photovoltaic (PV) system between 2022 and 2032 will receive a 30% tax credit. This new bill will significantly make solar panels more accessible to homeowners and potential business owners since it is predicted that the cost of installing them will decrease by about 30%. This bill also puts an end to penalties for those who use this tax credit, and there are no more penalties issued to those who claim the credit, those who increase their tax liability by claiming the credit will not be subject to penalties or fines.
2. The New Bill Creates a Shift in Tax Policy
The bill simplifies and restructures how tax credits are claimed. There are no penalties or fines for those who claim the tax credit, so if a homeowner wants to use solar panels and can not afford to put them in, they will be able to get the tax credit.
Main Changes
- If you install a photovoltaic (PV) system between 2022 and 2032, you’ll receive a 30% tax credit. That will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. If you’ve already installed a system in 2022, your tax credit has increased from 22% to 30%. So don’t wait – claim your credit today!
- If you’re looking to maximize the benefits of solar energy, pairing a solar battery with solar solutions such as solar panels or solar shingles is a great option. Thanks to the recent expansion of the ITC, energy storage devices with a capacity rating of 3 kilowatt hours or greater are now eligible for inclusion. This means that stand-alone storage is an option, but pairing it with solar can help you get the most out of your investment.
3. Savings on Solar
Installing rooftop solar panels alongside other solar solutions just got a whole lot cheaper, thanks to the ITC. They’re offering a 30% discount on installation costs, which could save the average American family more than $7,500. And that’s not all—over the lifetime of the solar system, families can expect to see an additional average savings of $9,000 on their electricity bills. So going solar is a great way to save money.
In Conclusion
The new bill is estimated to cost $5.5 billion over ten years, and it is seen that the cost of solar panels in the next three years will decrease to a ratio of 3:1 compared to its current price range.
The current tax credit already rewards homeowners who invest in solar panels, and this bill increases the amount of savings that can be had by homeowners who use them. Now is a better time than ever to invest in Solar and do away with your Electricity Bill!
