The Federal Solar Tax Credit Timeline
Initially, the ITC was set to expire at the end of 2007. However, the success of the program led the federal government to enact a series of extensions that still allow you to obtain substantial tax benefits this year and over the course of the next several years. Here’s what that timeline looks like:
- 2019: In 2019, the tax credit will remain at 30% of the cost of your system.
- 2020: In 2020, owners of new commercial solar installations will be able to deduct 26% of the cost of their solar panel system from taxes.
- 2021: By 2021, owners will still be able to deduct 22% of the cost of their system from taxes.
- 2022 and on: Solar owners will be able to deduct 10% of the cost of their system from taxes.
This timeline means that 2019 is truly the best time to make the upgrade to solar if you want to maximize your tax incentives. You will be able to claim the 2019 incentive rate so long as the construction of your system has been initiated by December 31, 2021, and is operational by December 31, 2023.