If you are considering getting solar panels, you may realize how expensive they are initially and not be sure if they’re worth it. Did you know that many states offer a solar program that allows you to receive tax credits? There are also federal tax credits too, meaning you can save money in the long run in addition to the money you’ll already be saving just from using the solar panels. In this video, you will learn how the solar tax credit works. With this information, you can know what to expect and make a more informed decision.
Keep in mind that a tax credit is not a deduction, rather, if you owe taxes, then credit can be used to pay for those instead of using money out of your pocket. As the video explains, think of it as a gift card that you can use to pay the IRS. Until 2023, anyone who gets a solar system installed will receive a tax credit for 26% of what their system cost. So when you buy a solar system, 26% of that cost will turn into a tax credit that you can use to pay your taxes.