By 2022, the residential tax credit is scheduled to be eliminated altogether
Used as an incentive by the U.S. government to build out solar across the country, the ITC since 2006 has allowed commercial and residential customers to deduct 30 percent of the cost of installing a solar energy system from their federal taxes. Since a rooftop system can frequently cost $20,000, a 30 percent credit can amount to $6,000 in tax savings.
But 2019 is the final year the ITC remains at 30 percent. Starting in 2020, the tax credit steps down to 26 percent and in 2021 it drops to 22 percent. And in 2022, it is scheduled to go away completely for residential customers. For commercial solar installations, the ITC will drop to 10 percent in 2022, where it is scheduled to remain.
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