Solar Energy Tax Incentives

Solar Energy Tax Incentives

Did you know that you can use current state and federal tax incentives to invest in a Solar Energy System? Here is an outline of the incentives and the typical benefits our customers see:

Federal Investment Tax Credit

The Federal Investment Tax Credit  makes up 30% of the installed cost for a Solar Energy System. It is a one-to-one tax credit. Time is running out to take advantage of this tax credit as it will start ramping down at the end of 2019, ending at 10% in 2023.  Generally, unused credit can be carried forward to the next year.

Iowa  State Tax Credit

The Iowa State Tax Credit makes up 15% of the installed cost for a Solar Energy System. It is computed as 50% of the Federal ITC, with a $20,000 limit for commercial entities. The Iowa State Tax Credit is a one-to-one tax credit. Credit can normally be carried forward.  Funds are limited to $5M/year and awardees are put on a waiting list in the order received.

In effect, with depreciation expense factored in, our commercial customers are seeing around 60-70% of the system cost covered by incentives.  This means that with incentives and the system-produced energy savings, the system typically pays for itself in 3.5 – 5.0 years.  Whether our design eliminates 50% or 100% of the electricity costs, a system will continue to produce savings for an additional 20-30 years, ensuring a competitive edge for decades.

FREE Assesment

With solar prices at historic lows and incentives at historic highs, it is the perfect time to see whether a Van Wall Solar Energy System is right for you. Contact one of our Solar Energy Specialists for a free, no-obligation solar site analysis today.