Below is a guide to the most important tax incentives available for your clean energy investment(s). Note that Maine Solar Solutions does not provide tax advice and this is for informational use only. We strongly recommend you work with a professional tax preparer.
If you weren’t able to go solar in the tax year 2019, there are lots of reasons to make the switch to renewable energy in 2020. Between the federal tax incentive and incentives for complementary EV, there are many financial reasons to make the switch to renewable energy.
2020: Solar electric systems qualify for a 26% federal tax credit in 2020. This applies to both residential and commercial solar PV systems. This credit is a dollar-for-dollar tax credit and will reduce the amount of tax owed by the system owner before any deductions are applied.
BATTERY BACKUP: Batteries that are connected to a solar array and recharged by solar also qualify for this credit, per an IRS letter released in 2018 (https://www.irs.gov/pub/irs-wd/201809003.pdf).
EV CHARGING: In 2019, the US Congress extended a residential tax credit for up to 30% rebate ($1,000) on the installation of EV charging stations, applied retroactively, as well as through the end of 2020.
2021: Owners of new residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.
2022 and onwards: There is no longer any federal credit for residential solar energy systems. Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes.