Late last year, the President passed the federal spending package, which included an extension of the solar renewable tax credit at 26% for two more years.
The solar renewable tax credit, also known as the solar investment tax credit (ITC), allows you to deduct 26% of the cost of installing a solar energy system from your federal taxes. The ITC was set to drop from 26% to 22% in 2021, but with the passing of the spending bill it will remain at 26% through 2022.
The ITC helps projects in all markets — commercial, industrial, utility scale and residential — that begin construction during 2021 and 2022, to still receive the 26% benefit.
After 2022, the current plan is that:
- all markets will drop to the 22% level for 2023;
- the residential market will drop to 0% starting in 2024;
- and the utility and commercial markets will be established at a set 10% credit starting in 2024.
Click here to read the full text of the Amendment.
So, if you’ve been waiting to make your facility environmentally friendly, time has been extended. However, solar projects take time from initial conception to actual construction, so don’t wait any longer on getting that project started!
We Can Help
Whitman’s Renewable Services Division has more than twelve years of experience, and has performed engineering design services for over a gigawatt of solar systems throughout the country.
Our in-house engineers can assist from concept through design. Please do not hesitate to contact us today and we can assess your needs and help get your project moving.
Contact
For more information on the solar investment tax credit, or how we can assist you with your solar project, contact:
Carey Ruetsch
Vice President of Renewable Services
cruetsch@whitmanco.com
(732) 390-5858
Posted on January 25, 2021
