Have you been thinking about adding solar to your home?
As you may know, the government offers a federal tax credit for homeowners who purchase solar panels for their home. The tax credit is not available for solar leases.
The Federal Solar Tax Credit (also known as the Investment Tax Credit or ITC) will be reduced from 30% to 26% after 2019. To get the full 30%, your solar project should be fully installed and paid for in 2019.
Why go solar?
By adding solar panels to your home, you are not only saving energy, you are able to eliminate or greatly reduce your electric bill. And, you won’t have to worry about rising energy costs from your utility. You may also be adding value to your home, increasing your overall property value.
How does the Solar Tax Credit Work?
As long as you own your solar system, you are eligible for the solar tax credit. Even if you don’t have enough tax liability to claim the entire credit in one year, you can “roll over” the remaining credits into future years for as long as the tax credit is in effect.
So if your solar system total cost was $10,000, your tax credit would be $3,000.
How do I claim the investment tax credit?
You claim the investment tax credit for solar when you file your yearly federal tax return. Remember to let your accountant know you’ve purchased the solar system so they can complete the IRS form to get you that credit. And please be sure to consult your accountant for any information on how the tax credit will affect your taxes.
MCCU can help you go solar
The bottom line is – if you’ve been thinking about going solar, this is the year to do it! MCCU can help you finance your solar purchase with affordable loans that keep your monthly payments low. We can even help you find a licensed contractor.
Plus, when you finance your solar project with MCCU, you are eligible for a one-time loan reamortization, which means you can pay down your loan and lower your monthly payments.
Ready to go solar?
Find out more about our solar loans today!
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