Major Incentives Await Every Solar Customer
Getting a grasp of the many solar incentives can be overwhelming. We’ve broken them down so you can easily determine which ones are relevant to you.
Federal Investment Tax Credit – 2018 Deadline Fast-Approaching
Every American homeowner or business is eligible for this incentive. A Federal Investment Tax Credit lowers your Federal tax bill by 30% of the cost of your solar purchase. For example, if you buy a $60,000 solar array, you’ll pay $18,000 less on your Federal taxes that year. If you owe the Federal government less than $18,000 in taxes, don’t worry. The excess amount from your credit will roll over for 20 years.
Individual states also offer tax incentives. These incentives can be claimed in addition to the Federal tax credit. When you combine your Federal incentives with your state incentives, you’re saving a large portion of the cost of your array. For some customers, nearly all of their array is covered. In years to come, the Federal tax credit will diminish in value. The sooner you claim it, the more money you’ll save.
Deadline: To claim this tax benefit on your 2018 taxes, your solar array must be purchased, installed, inspected by the end of 2018. Simpleray’s installation calendar is filling quickly. Contact us now if you want to go solar and substantially reduce your 2018 Federal taxes.
Accelerated Depreciation for Businesses
Solar investments depreciate by the MACRS schedule, which allows an array to depreciate over five years. Also, the array can be depreciated by 50% in the first year, and the remaining 50% can then be depreciated via the typical schedule.
View additional information about solar incentives specific to residential, commercial, agricultural and government customers click here.
Iowa State Tax Incentives
The state of Iowa offers a 15% tax credit, which means your state taxes will be reduced by 15% of the cost of your array. Since it’s combined with the Federal tax credit, this means you’re already saving 45% of the cost of your solar purchase. e.g. If your solar array costs $10,000, you can reduce your state taxes by $1,500—providing you with a total reduction of $4,500 on your 2018 taxes.
*Note that there is a price cap on the Iowa state tax credit: $5,000 for residential customers and $20,000 for commercial customers. Also, 2018 Iowa tax credits have already been claimed, but a limited supply of 2019 credits are still available.
Illinois Adjustable Block Program
In Illinois, there’s an incentive available which is paid for by the utility companies. It’s called the Adjustable Block Program and it typically covers 50%-60% of the cost of your array. The amount of payment is based upon the amount of solar energy a customer’s array is expected to produce. These payments are provided in addition to the Federal Investment Tax Credit and savings on energy bills. In some cases, the entire cost of the solar array can be paid for with the Federal tax credit and Adjustable Block Program payments. As more solar systems are installed in Illinois, the amount of incentive decreases. For this reason, it’s best to install as soon as possible in Illinois. The program will begin accepting applications on January 15, 2019.
Missouri Rebate Programs
Depending on the utility provider, Missouri solar customers may be eligible for substantial rebate payments. The amount of these rebate payments varies depending on the size of the system installed. The rebates save some customers an additional 20-30% on the cost of the array. One of our Renewable Energy Consultants will be happy to analyze your potential savings if you request a free quote from us.
Don’t See Your State Listed?
Don’t worry! There are still plenty of incentives available outside of these states. If you don’t see your state listed but want to know if there are any programs to help you go solar, you can reach out to us to see what is available in your state.
Note: While we do our best to keep this page updated, we can’t promise that every program listed will apply to your exact situation or will be available should you decide to install solar. A Simpleray Renewable Energy Consultant will be able to provide details on everything you may qualify for.