Do solar panels make economic sense for you?
Solar Investment Tax Credit “ITC”, aka ‘federal solar tax credit’ is to remain at 26% of the cost for 2021 & 2022 tax filing seasons. This federal credit will drop to 22% in 2023 and expire. 2019 and before enjoyed a 30% credit. If the panels are bought or leased new and installed in the year tax credit is active, you qualify.
In addition to the federal credit, your state or location may offer a tax credit or other incentives in the form of rebates and net metering. Since credits are taken below the line, this will not help manage your AGI for the credits such as the Child Tax Credit “CTC”.