The residential energy efficient property credit has been reinstated through 2021. This means you could get a tax credit for installing solar panels on your home. You can even get a credit if you shared the cost of solar panels not directly located on your home, such as at an off-site community solar array or similar arrangement that generates solar energy directly for your home. The credit is equal to 30% of the cost of qualified solar electric property made prior to December 31, 2019, 26% for expenditures made in 2020 and 22% for expenditures made in 2021. There are some limitations on the credit. Additionally, unused credit amounts may be carried to future tax years.
As with any tax law, there are many variables that come into play for this credit. If you are thinking about making energy efficient improvements, let’s get together and make improvements not only for our planet but for your taxes as well!