The average property tax in California ranges from .77% to 1.6% of the home’s value. This makes the average home valued at $440,000 subject to roughly $3,000 to $4,000 per year in property taxes. Everyone is willing to pay their fair share, but we’re all okay with making that share as reasonable as possible! So, it’s good to know that you can get a tax break for going solar.
Federal Solar Assistance
In the spirit of encouraging energy self-sufficiency, as well as a cleaner, safer environment for all, the federal government offers a break for homes and businesses that go solar. That’s why they offer the Investment Tax Credit, and if you act in time, this savings is available to you. This is an incentive that will grant you up to 26% of the cost of a new solar energy system. That is a substantial discount, but it has to be taken advantage of quickly as it decreases over time.
Step Down Tax Credits
If your new solar energy system can be connected to the grid and placed into service in 2020, you can claim a 26% tax credit and see considerable savings. A system that costs $20,000 will be cut down to only $14,800.
The tax credit is designed to step down over the next few years. If you get a system in 2021, you’ll save 22%. In 2022, it goes down to 10%. After January 1, 2023, there will be no more tax savings for residential solar installations. But there isn’t any reason to wait that long. You can get yours today and still claim 26%!
No Maximum Limit
One of the best things about the Investment Tax Credit is that there is no limit to how much your savings can be. If you buy a system that costs thousands or one that costs millions, you’ll still get to save more than a quarter of the cost. That can be very beneficial when you’re deciding the size and output that you’re going to need.
And you can claim the credits over time. You don’t have to use all of your savings in one year. For instance, if you got a tax credit of $5,000 and this year your income tax bill was $3,000, then you could wipe out this year’s debt and save the other $2,000 for next year!
At Aurora Energy, we want to help you take full advantage of this opportunity. Don’t wait too long and miss your chance to save thousands of dollars. Give us a call right now! We’ll make sure that you not only save as much money as possible, but you’ll have a great solar energy system that will keep saving you money for decades!