What’s the 30% Tax Credit?
A tax credit is not a tax deduction. With a tax deduction, you deduct some amount off your gross income to determine your taxable base income. A tax credit is much better. It can be used to pay off your owed federal taxes. So, it’s sort of like receiving an IRS gift card.
Who is Eligible to Receive the ITC?
Any U.S. tax payer who purchases a solar or other renewable energy system is eligible to receive the 30% solar ITC.
However, if you installed your solar system with a solar lease or a solar PPA, then you’re not eligible, since the leasing company owns your solar system, so they will receive the ITC. But most leasing companies take the value of the 30% ITC into consideration when calculating your lease rate, so you do benefit indirectly.
Monday, 2 April 2018
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