Education
Solar Incentives
Switching to solar comes with more than just energy savings—it also comes with financial benefits. The Investment Tax Credit (ITC) is the biggest federal incentive, but many states, cities, and utility companies offer additional programs to help lower the cost of going solar.
Understanding the Federal Solar Tax Credit (ITC)
One of the most valuable incentives for homeowners is the Investment Tax Credit (ITC), which allows you to claim 30% of your solar system costs as a credit on your taxes.
How the ITC Works
When you install a solar panel system, you can apply the 30% tax credit when filing your taxes the following year. Unlike a deduction, which lowers your taxable income, a tax credit directly reduces the amount you owe to the IRS, dollar for dollar.
For example, if your solar system costs $10,000, your tax credit would be $3,000. If you earn $60,000 per year and owe $15,000 in taxes, the credit reduces your tax bill to $12,000.
What If You've Already Paid Your Taxes?
If your taxes have already been withheld from your paycheck throughout the year, the IRS will issue the credit as a rebate check, meaning you get that money back.
State & Local Solar Incentives
In addition to the federal ITC, many states, cities, and utility companies offer rebates, tax credits, and financial incentives for homeowners who install solar. Freedom Solar Solutions can help you find all available programs in your area so you can maximize your savings.
Curious about how much you could save? Contact us today to learn more about solar incentives in your area.
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Address: 200 S. Bayard St. Waynesboro, VA 22980
Phone: (540) 649-7467
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