When is the best time to install solar to take the best advantage of your solar tax credit? The answer is probably the end of a calendar year.
You get to take the Federal Solar Tax Credit when you file your taxes for the tax year you install and power on your solar system. This means you make the full solar investment up front. If you make this investment early in the calendar year, you have to wait all the way until next tax season to claim your credit. However, you can maximize cash flow on your investment by installing and powering your system on toward the end of a calendar year. This way, you can file your taxes as soon as possible in tax season and claim your credit.
For taxpayers who have tax withheld by an employer throughout the year, the tax credit will translate to a tax refund. For those who withhold their own taxes and pay in estimated increments, or in a lump sum, the tax credit will either allow you a tax refund, or decrease the amount you need to pay in a lump sum.
DON’T WAIT UNTIL TOO LATE IN THE YEAR TO START THE SOLAR PROCESS!
Every year solar installers across Colorado and across the United States are inundated with requests from customers to have systems installed and powered on by the year’s end. It becomes very difficult for every customer to find an installer that can meet that requirement. Typically, installers fill their installation pipeline for a year by the beginning of November or earlier. It is best to start looking for an installer who will meet your needs in the September-October time frame, so that you can make sure to have your system powered on by the end of the year.
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Looking for a way to finance your tax credit at 0% interested until you receive your tax refund? Check out Sungage Financial’s purpose built solar loan product.
The Federal Solar Tax Credit decreases the cost of a solar project by 30% by decreasing the amount of taxes you pay.