The solar industry has grown rapidly over the last decade. Federal and state tax credits have played a major role in fueling the spread of solar energy.
The US federal government offers a tax credit for homeowners or businesses who install a solar system. Which means that homeowners should take advantage of the available tax credits and use them to help reduce the cost of going solar!
WHAT IS A FEDERAL SOLAR TAX CREDIT?
The federal solar tax credit is a dollar-for-dollar reduction of income tax liability. The value claimed as the tax credit is equal to 30% of the cost of the solar installation project.
WHEN WILL THE FEDERAL TAX CREDIT (ITC) EXPIRE?
In August 2022, the Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032. It will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. The tax credit expires starting in 2035 unless Congress renews it. If you wish to learn more directly from the government's source click here.
LIFE SAVING AND ENERGY SAVING TIP: Hurry up and take advantage of the 30% ITC.
HOW DO I CLAIM THE FEDERAL TAX CREDIT?
Claiming your federal solar tax credit may feel daunting at first glance, but don’t worry, with Palmetto Energy Solutions, South Carolina's top solar panel installation service providers, we will guide you through the whole process. Below we have provided you with a simple step-by-step guide for claiming your federal tax credit.
*For more information, you can go ahead and consult your tax advisor or book a free consultation session with out team of solar experts for guidance, BOOK HERE.
If you need more guidance book a free and virtual consultation with our team. Or you can also visit the Official Web Site of the State of South Carolina from here.
Do you have a taxable income? Are you a South Carolina resident? Then what are you waiting for, switch solar today and take advantage of the federal and sc's state tax credit you will be eligible for. The state of South Carolina offers an additional tax credit up to 25% on all eligible costs to a maximum of $3,500 or 50% of a person’s tax liability, whichever amount is less when applied to the individual’s yearly taxes.
WHEN WILL THE SOUTH CAROLINA STATE SOLAR TAX CREDIT (ITC) EXPIRE?
Unlike the federal tax credit, the state solar tax credit has no expiration date and any excess may be carried forward up to 10 years. keep in mind, the maximum payment each year is $3,500.
HOW DO I CLAIM THE SC SOLAR TAX CREDIT CERTIFICATE?
Our team is aware that the process of claiming your SC solar tax credit might be overwhelming; therefore, we are here to ease the process. Below you will find a simple guideline to help you apply for your state solar tax credit.
*For more guidance we advice you to consult your tax advisor or contact our team (803) 485-1149
Net metering varies by coverage area. Some utilities provide a one-for-one credit, while others charge solar users more during peak periods and less during off-peak times.
About South Carolina Net Metering:
In South Carolina, both residential and commercial solar panel users can benefit from net metering. Net metering enables individuals to use their solar panels to generate electricity and then transfer any excess power to the grid.
The extra energy can be used later or sold back to the utility provider at a set price. This arrangement encourages the optimal use of solar energy and offers a financial incentive for installing renewable energy installations.
With an average of 216 sunny days per year, ten outstanding incentive programs, and new regulations protecting net energy metering (NEM), there has never been a better time to install a solar array in South Carolina.
Go solar and let the net metering in South Carolina help you get more control over your utility bills.
Ever wondered where does your energy go? Click on the link and read our blog that explains where energy is distributed in our homes!
DISCLAIMER:
Palmetto Energy Solutions do not provide tax, legal or accounting advice. This material has been prepared for information purposes only. It is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
Are you still not sure if you want to go solar in South Carolina? We have got you covered! Click on the inserted link to know if is it worth switching to solar in 2024, and you will get your answers.
It provides a 30% tax credit for expenses associated to the installation of solar panels and batteries. The federal solar tax credit is officially known as the Residential Clean Energy Credit, and it was set to expire in 2022, but the Inflation Reduction Act extended it until 2035.
Once! For example, if the installation is completed in December 2024 but you can't plan an inspection and receive permission to operate (PTO) from your local utility until January 2025, you can only claim the credit in 2025.
To qualify for the federal solar tax credit, you must install a solar-powered energy system that generates electricity for a U.S. residence. The credit covers solar panels, water heaters, and energy storage systems.
*You can read more about tax credits, and sc incentives through our blog guides that we keep them up to date!
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