Recently, the United States Government passed “The Inflation Reduction Act of 2022” which aims to combat rising inflation rates by promoting sustainable and environmentally friendly practices. By offering tax incentives and subsidies for renewable energy production and use, the act encourages individuals and businesses to reduce their carbon footprint, thereby helping to decrease emissions and promote a healthier environment.
With the Inflation Reduction Act of 2022, there will be a 30% solar tax credit until the end of 2032. In 2033 the tax credit will decrease to 26%, and then it decreases again to 22% for systems installed in 2034. In order to be eligible for this tax credit, your solar panel system must have been installed between January 1, 2017, and December 31, 2034. The credit only applies to the “original installation” of the solar equipment so it must be new or being used for the first time, and you must own the solar system either by purchasing with cash or through financing.