Save Up to 30% on your Tax Bill
As a business owner, you know that managing your tax liability is a smart way to boost profits and re-invest in your business. But did you know that the government will cut your tax bill to install solar panels on your roof? To encourage solar projects there are a range of generous local, state, and federal incentives to help you make the switch. The most popular of these is the Solar Investment Tax Credit. It allows you to reduce your IRS bill by up to 30% of the total cost of your solar installation (parts and labor). In addition, you can use accelerated depreciation of your solar system to reduce your tax liability even further.
Maximum Tax Benefits Through 2019
The Solar Investment Tax Credit was originally set to expire at the end of 2007, but a series of extensions pushed the date out to to the end of 2016. Thanks to the spending bill that Congress passed in late December 2015, the tax credit is now available in some form through 2021, but at the end of 2019 the benefits started to diminish.
Here’s how it breaks down:
- 2016 – 2019: The tax credit remains at 30 percent of the cost of the system. This means that through the end of this year, you can still get the full benefit.
- 2020: The tax credit steps down to a 26 percent deduction of the cost of the system from your taxes.
- 2021: The tax credit steps down to a 26 percent deduction of the cost of the system from your taxes.
- 2022 onwards: Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes.
How to Take Advantage of The Opportunity
Beyond the tax savings, solar costs are lower than ever and will go a long way to reduce your utility bills. This is especially true in California – one of the most expensive electricity markets in the country.
OnSwitch offers the fastest and easiest way for you to take advantage of the full 30 percent tax credit this year. Just enter an address and our SkyQuote 3D aerial mapping technology will deliver an instant, ready-to-buy quote in less than 24 hours. Every SkyQuote includes a complete 25 year savings analysis — including the impact of utility rate increases and tax incentives. When you decide to get started, our solar advisors make it easy for you by coordinating the entire process with our network of installers and finance partners.
To learn how we can cut your tax bill and help your business become cleaner, greener, and more profitable, request a free solar quote from OnSwitch today.