You’ve probably heard about the sweeping tax reform legislation that was signed into law just a few weeks ago. While there’s a lot of conflicting information floating around, many people have expressed concern about one key element: the Investment Tax Credit. This was one of the biggest incentives that has caused the entire solar energy industry to really take off and made solar more viable and affordable than ever before by giving homeowners a huge break on their taxes.
However, for a time it looked as though the credit may have been in jeopardy. As the bill proceeded through the government, different renditions either featured a modified version of the tax credit or eliminated it all together, which had many of the renewable energy industry leaders scrambling to plead their case.
Well, in the end everyone’s effort worked out and we have good news: the final version of the bill which President Trump signed into law left the Investment Tax Credit and the Production Tax Credit completely untouched, which means you’ll still be able to enjoy being able to claim up to 30 percent of the costs you incur to install solar panels as a credit on your taxes.
That means if you made the switch to solar during the year 2017, you’ll be able to make this claim on your federal tax return and reap the rewards this April. The credit will also apply to power storage systems as well, such as battery back-up systems which are growing increasingly popular amongst those who wish to capitalize on the energy their solar panel systems produce while they’re at work and not at home to enjoy them.
The Future of Tax Credits
While the tax credit is safe for now and the immediate future, some industry experts have expressed reservations about their security for the future. Some think that while the credit is safe for now, it could always be removed again in later revisions and future similar legislation, by this administration or by one in the future.
However, others believe that the falling costs of lithium-ion energy storage may essentially make the investment future-proof for homeowners. Companies such as Tesla, Greensmith Energy, and AES Energy Storage have all completed major power storage projects that have shown how storage can be beneficial for not just single homes, but entire municipalities as well.
If you’re looking to make the switch to solar, talk to a New Jersey solar installation expert from Sea Bright Solar by dialing (732) 253-4052! Schedule a consultation today and learn about how much money you could be saving on your monthly utility bills by switching!