Go Solar Before the Expiration of the Federal Solar Investment Tax Credit
If you’ve been thinking about converting your Wisconsin home or business to solar power, now is a good time to get rolling. Changes are coming next year (2016) that will likely reduce the solar Investment Tax Credit (ITC) from 30% to 10% for commercial enterprises and from 30% to zero for homeowners.
The ITC is a federal policy mechanism that supports the use of solar energy in the United States, and will benefit Wisconsin homeowners & business owners. In 2008, the tax credit was extended to allow more people to create solar platforms for their homes or businesses. That extension is set to end on Dec. 31, 2016.
About the Solar Investment Tax Credit
- Provides a 30% credit for residential and commercial solar systems.
- Solar projects have blossomed under the ITC since it’s 2006 inception: the extension through the end of next year has helped installations experience an increase of more than 1,600%.
- The tax credit gives stability to companies engaged in long-term investments to spur innovation and competitiveness.
Commercial and residential
For commercial projects, the company that oversees installation, development or financing uses the credit under Section 48 of the commercial ITC. For residential projects, the homeowner applies the tax credit toward his or her income tax. The residential arm of the credit is used when homeowners buy solar systems outright and have them installed.
How it works
The federal solar Investment Tax Credit means a matched-dollar reduction in income taxes paid by whomever is claiming the credit. To be eligible for the credit, persons or entities must launch solar projects that are in service by the end of 2016.
After that time, the credit disappears for homeowners and drops to 10% for businesses. However, it is possible that Congress could step in and again extend the deadline or change the “in service” wording of the law to allow credit for projects that have been commenced but not completed by December 31 next year.
It’s unknown if Congress will intervene, so it’s prudent for those considering a switch-over to solar power to make the decision with enough time to complete the projected installation before the credit extension deadline.
Here at Burlington Solar, we are committed to helping local residents near Milwaukee WI get solar up and running for their home and/or business. Speak with one of our experts today to learn more about our dedication to this eco-friendly energy project and find out the benefits you can enjoy from a solar energy system.