Save BIG with Federal Solar Incentives in 2021

The chance to claim the full 26% tax credit on your solar has been extended and spots are filling up quickly*. The longer you wait, the less of a credit you’ll receive.

The (residential) federal solar tax credit schedule is as follows:

• 2021 through 2022: 26% solar tax credit
• 2023: 22% solar tax credit
• 2024 & beyond: No tax credit

The (commercial) federal solar tax credit schedule is as follows:

• 2021: 26% solar tax credit
• 2022: 22% solar tax credit
• 2023: 10% solar tax credit
• 2024 & beyond: No tax credit

How the Federal Investment Tax Credit Works

The Federal Investment Tax Credit is a huge potential benefit to home and business owners looking to install solar, and encouraging them to invest in improving their property with renewable energy. If you install a solar panel system in your home, you’ll be able to claim up to the maximum amount for that given year as a credit, thus dramatically lowering your tax liability.

Let’s look at an example. Say you install a solar panel system on your roof that costs about $20,000. Through this solar program, you would be able to claim a credit for up to 26 percent of that amount on that year’s tax return. That means you’ll receive a $5,200 credit towards your tax burden for the year in which you installed your panels. Say your tax burden for the year is $10,000, well after applying your $5,200 credit, you’d be left with just $4,800 to pay!

Keep in mind that you’ll get immediate monthly cash savings that provide a return on that investment, and that with today’s low interest rates and $0 down financing you can go solar with nothing out of pocket.

New Mexico Solar Incentives

While the federal government offers a number of tremendous benefits, state and local governments have also implemented programs to encourage residents to decrease their reliance on an aging electrical grid and help the environment by reducing dependence on fossil fuels.

• Net-metering: You can sell the extra electricity your system generates back to the grid for a credit or even a refund on your utility bills!
• No Gross-Receipts Tax: That's an additional 5-8% savings.
• Additional 10% state tax credit (maximum $6,000 cap) and with limited budget available on a first-come first-served basis.

^{* Consult with tax professional to determine if credit can be fully utilized based on your taxable liability.}

Learn more about switching to solar by contacting Positive Energy Solar at (505) 908-9578 today! We offer a FREE consultation.