Previously, the incentive was fixed at 26% for 2022 and scheduled to step down to 22% in 2023, disappearing entirely in 2024. Two of the most impactful provisions of the bill is a long-term extension of the solar tax credit AND a boost to 30 percent! The tax credit will be extended 10 years, firmly set at 30% and runs through Dec 31, 2032. It will drop to 26% in 2033, then 22% in 2034 and expires 2035.
What happens if you already installed solar on your home this year expecting to receive a 26 percent? No problem, you’re golden. The new law is retroactive to Jan 1st, 2022. You qualify for the 30%. Great news!
Let me know if you have any questions or consult your tax preparer. Have a bright weekend.