President Biden signing the Inflation Reduction Act into law this week marks what will be the largest investment in clean energy the world has ever seen. Here’s how it affects your federal solar tax credit.
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.
Mike Kleeman
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.
Mike Kleeman
