Americans are waking up in 2021 realizing that 2020 wasn’t a bad dream and that they still have to pay taxes on the income they earned. While most of us would prefer that 2020 be omitted from the official record, taxes and all, you can count on Uncle Sam to come calling April 15th.
If you are like most homeowners throughout the Central Coast and South Bay Area, you could use a tax credit to reduce what you will have to pay the IRS. CPAs have strategies to lower your tax burden but did you know that the federal solar tax credit was extended late last year? 2020 wasn’t a total loss after all! Homeowners who switch to solar can still take advantage of the generous tax credit which will reduce the cost of the system by 26%. For example, if you pay $150 per month in electricity, you would need a 5 kilowatt (KW) system. A 5KW solar pv system would cost around $20,000. With the federal tax credit ($20,000 minus $5,200), your net out of pocket would be $14,800 for a system covering 100% of your electricity needs. In fact, our average client will receive a $6,600 tax credit when they file this spring.
You may also be interested in battery back up to ensure your power stays on during winter storms and during PG&E’s Public Safety Power Shutoffs. If you have solar, the battery is eligible for the tax credit as well. Perhaps you’re considering an electric vehicle and need a charging station installed to charge your car at home. Yep, that’s also eligible for the tax credit. Many homes built in the 40s, 50s, 60s and 70s need upgrades to their electrical systems or a main electrical panel replacement. Allterra does all of that work including battery back up, EV charging and solar related electrical. Take advantage and future proof your home with a big assist from the federal government. 26% off the entire project is a compelling reason to get a free evaluation.
Allterra has been around for 16 years and we have completed thousands of successful solar installations. We offer free contactless design consultations so you can decide, without obligation, whether paying less for electricity is the right choice. Click here to schedule your consultation now.
See below: Allterra client and tax professional Caroline Murphy explains the Federal Investment Tax Credit (ITC). When she went solar, the credit was worth 30% of the system. It will go to 22% in 2023 and to 0% thereafter so act now.