Tax Incentives, A Unanimous Solar Benefit
Updated: Oct 17, 2020
Increasing the value of your property and decreasing your annual tax fees, the solar switch continues to be worth the investment.
In a world that hardly seems to agree on anything, I believe there are certain concepts we can all support.
Like how the E light illuminating on your dashboard doesn't so much signal the need to fill up, but acts as the metaphorical starting flag in the challenge to see how long we can go without filling up.
30 miles left in the tank? On Nantucket? I'll swing by Shell next week at the earliest.
Or how we all know the menu at the Cheesecake Factory is about ten pages too long. We're all here for the free bread and desserts, you can eliminate the dozens of pages of appetizers, entree salads, and especially the Skinny-Licious choices.
Nothing is keeping this under 2,000 calories, not even a sweet potato fry substitution.
We're all surely united in the opinion that taxes aren't enjoyable. Even if you understand the calculation and submission process, which I still struggle to, we would all rather be doing practically anything else with our time and money, right?
And lastly, I think we can certainly concede that we live on a beautiful island and hope to maintain it for generations to come. At ACK Smart Energy, we work to ensure that future with solar panel installation, hoping to see Nantucket through to total energy independence one day.
Luckily, the state and federal governments agree with the importance of the solar switch and that, yeah, taxes are the worst.
Enter the Federal Solar Tax Credit, also known as the Federal Investment Tax Credit. As noted on BostonSolar.com:
"This 2020 federal tax break for installing solar panels provides both business owners and homeowners a financial incentive for investing in renewable energy. As of this year, the solar panel tax credit allows homeowners to claim 26% of their total solar installation costs from their federal tax liability.
Let’s say your solar installation costs totaled $35,000. The Federal Solar Tax Credit allows you to claim $9,100 from what you owe in federal taxes when you file next April (2021). What’s more, if your tax credit covers more than your tax liability, you can roll the remaining credit over into the next year so that you don’t lose out on the savings."
The benefits aren't just limited to federal taxes. The state of Massachusetts in the last decade has continued to establish itself as one of the top 10 states for cumulative installed solar capacity. Because of this, the state government also extends a tax incentive in the Massachusetts Personal Income Tax Credit. More specifically, it allows for a credit of $1,000, or 15% of qualifying project costs, whichever is less.
So when faced with the prospect of your property value increasing, carbon footprint lessening, community benefitting, bills disappearing, and taxes shrinking, are you feeling like calling ACK Smart Energy?
We couldn't agree more.