Inflation Reduction Act Expands Solar Energy Tax Incentives
Understand what the 'going green' benefits could be
Among the Inflation Reduction Act's (IRA) expansions to existing tax credit opportunities are those that promote the adoption of solar energy systems. The IRA extends the provisions of the Solar Investment Tax Credit (ITC) so residential homeowners who install designated solar energy systems between January 1, 2022, through the end of 2032, will receive a tax credit of 30 percent of the cost from their federal income taxes.
If owners owe less than that amount in federal taxes for the year they install their solar system, they can carry over any unused credit for as long as the ITC is in effect, January 1, 2032.
After 2032, the residential ITC will start to phase out to 26 percent in 2033, 22 percent in 2034 and will end in 2035 unless Congress renews the provisions. It is important to note that the IRA's Investment Tax Credit expansions are not retroactive for residential solar projects that were placed in service prior to 2022.
Please select this link to read the complete article from OSAP Strategic Partner Clark Schaefer Hackett (CSH).