With April 15 quickly approaching, the Solar Energy Industries Association (SEIA) is reminding eligible solar consumers to claim the 30% investment tax credit (ITC) on their federal tax returns.
Consumers who purchased a solar system and installed it on their home in 2017 may be able to claim a 30% federal ITC under Section 25D of the internal revenue code. Commercial entities are eligible to claim a credit under Section 48 of the code.
“It’s important for eligible solar owners to remember the ITC when filing their taxes,” says Abigail Ross Hopper, SEIA’s president and CEO. “At tax time, we encourage solar consumers to work with a tax professional to ensure their tax benefits are claimed and filed correctly.”
The tax credit, a dollar-for-dollar reduction against one’s tax liability, is governed by strict eligibility criteria and rules, notes SEIA. Both the residential and commercial ITC are set at 30% through 2019. After that, the ITC is scheduled to decline from 30% to 26% in 2020 and 22% in 2021.
For more information on the ITC, see this fact sheet provided by SEIA.