Solar Tax Credits to Sunset
“In this world nothing can be said to be certain, except death and taxes.”
Taxes. No one enjoys paying them. We’d all rather use the money for something else. A vacation, a new side-by-side, the kids college tuition, the list goes on. Yet, pay them we must. Fortunately, governments large and small attempt to influence our behavior through tax incentives like the solar tax credit, giving us a few ways to ease the pain and get a little something for ourselves in the bargain.
For example, for years, the federal government and the state of Utah have encouraged businesses and individuals to invest in renewable energy through tax credits. Install solar panels on your home or business, and you’ll get 30 percent of the cost of the project back in the form of a tax credit.
Not a bad deal when you think about it, especially since you get free power from the sun in return. Unfortunately, the famous nugget of wisdom predicts, all good things come to an end.
Come 2020, the solar tax credit sunset begins. Federal tax credits for renewable energy upgrades for both businesses and homeowners will drop to 26 percent on January 1, 2020. Then in 2021, the solar tax credit drops again to 22 percent and in 2022 is goes away all together for residential solar and drops to 10 percent for businesses.
What does the solar tax credit sunset mean to you?
After years of seeing the cost of solar slowly fall it’s about to go up fairly rapidly. And that means, right now, and for the next six months, this will likely be the best time to install a solar array on your home or business for several years to come.
Getting 30 percent of the cost of a solar array back on your tax bill can mean thousands of dollars in your pocket instead of Uncle Sam’s come April 15th and it makes the return on your investment and the break even point for solar far more attractive to home and business owners.
When you couple the tax incentives with the state of Utah’s new C-Pace program, a solar project can have a huge impact on revenue for business owners. Not to mention the public relations bonanza you can reap by becoming a “green” business. There’s a reason Uinta Brewing Company brags about how sustainable their brewery is; it’s good business.
If switching to clean energy is something you’ve looked into in the past, whether for your business or your home, but you were scared off by the high price tag or the numbers didn’t make sense at the time, you’ll want to look at it again before the end of 2019.
The numbers won’t get any better than they are right now for quite some time. You can find out more about how to take your home or business solar at ACESlyfe.com or you can chat with an experienced and knowledgeable ACES Lyfe rep by calling 435-294-2900 and they’ll be happy to answer any questions you might have.
There’s no shame in taking advantage of these tax incentives. They help keep the air around us clean, increase our energy independence, reduce green-house emissions and have the potential to save you or your business a whole lot of money while they last. For more information visit the Solar Investment Tax Credit website!