Federal Tax Credit for Residential Solar Systems May Be Extended

As of now the Federal Tax Credit for a residential solar system is 30% of the total cost and is planned to drop to 26% next year. Last month law makers proposed a bill that would keep the tax credit at 30% for another five years so there is hope. SunPower CEO Tom Werner now puts the odds of this happening at 30% while it was 0% at the beginning of 2019. Sunrun CEO Lynn Jurich is not banking on the bill passing and is continuing to prepare for the worst. Greg Jenner, a tax lawyer, said that the recently introduced extender bills "face fairly long odds" as 2019 draws to a close. "Passage of any tax legislation during a presidential election cycle is problematic, and perhaps even more so this election," said Jenner. "The only tax legislation likely to pass, if any, is a bill to extend tax provisions that have or are about to expire. Even then, the chances are that this would only occur as part of a larger appropriations package and not as freestanding legislation." David Bywater, Vivint’s CEO said, “The fossil fuel industry has benefited from direct and indirect support for well over a century, and the renewable energy industry that is employing so many Americans deserves a level playing field,” said Bywater on the call. “Because Americans value pollution-free power, job creation and energy independence, extending the ITC will enable the solar industry to continue its growth and bring the economic and environmental benefits of renewable solar energy and solar jobs to all regions of America.”

Due to all of this speculation the safest best for homeowners is to take advantage of the 30% tax credit right now because there’s a high chance it will be lowered at the beginning of 2020. Check us out at AllyElectricandSolar.com for a smooth ride to energy independence!