Timeline Of Upcoming Changes
As you can see from the graph, getting a solar energy system installed is way more beneficial sooner than later. The federal government will be offering:
- The maximum 30% tax credit during 2018 and 2019.
- It will drop to 26% in 2020, 22% in 2021, and bottoming out at 10% in 2022 for consumers.
- After 2023, this 10% tax credit will no longer be available for homeowners and will only provide the tax credit for commercial solar customers.
This tax credit allows up to 30% of the total cost of the system. If you have a huge tax bill, the credit can be taken all at once or you can utilize the credit over multiple years. For example, if your solar panel system costs $18,000, a 30% tax credit would be $5,400. If you owe $4,000 in taxes for 2019, your tax bill will be reduced to zero, with a remaining $1,400 tax credit for your 2020 and future returns.