Solar power is at the forefront of the renewable energy revolution due to its accessibility to homeowners. Many individuals and businesses in Utah are turning to solar services to help them generate their own power instead of relying on energy companies. There is one overarching reason why solar in Utah is a good idea: tax incentives. Read on to learn why you should get in touch with local Utah solar company and have your own solar panels installed.
Tax Incentives
The state of Utah wants to encourage people to invest in renewable energy systems, so they offer a tax credit to anybody that installs solar panels on their home. After your solar panels are installed, you will be able to claim a credit on the following year’s income tax to offset the cost. This credit will not be available for solar installed after December 31, 2023.
You are able to claim 25% of the total cost of installations completed in 2021, up to the amount of $1200. As stated above, this is a limited time incentive and the maximum that you are allowed to claim will reduce by $400 each year until 2023. After that, the incentive will no longer be available.
There are federal tax incentives available, too. You can deduct 26% of the cost of installing solar panels from your federal taxes. But, like the state incentive, this program is slowly being phased out.
In 2023, the amount you can claim will reduce to 22%. By 2024, only commercial claims will be allowed, and the tax-deductible amount decreases further to 10%. These dates apply to the date that construction starts on the project, not the date that it is finished. For example, if you begin installation of your solar panels in 2022, you will still be eligible for a 26% income tax deduction, even if the project isn’t finished until 2023.
If you are considering investing in solar panels for your home, it’s best to do it sooner rather than later so that you can take advantage of these incentives.
There has never been a better time to get in touch with Utah solar services and have solar panels installed on your home. There are some great tax benefits and net metering options that you can still take advantage of if you act quickly. If you’ve been on the fence about investing in solar, now is the time to do it.
Contact Mynt Solar to talk with one of our friendly team members. We can answer any questions you have and help you understand why solar in Utah is a good idea!
