Solar Panels Colorado Tax Credit

A solar power tax credit has proven to be a great help to citizens of forward looking states.

Solar panels colorado tax credit. An average sized residential solar. This tax credit is available until 2022. As a credit you take the amount directly off your tax payment rather than as a deduction from your taxable income. Legislators on capitol hill recently approved an extension of the solar investment tax credit itc which is one of the most significant pv subsidies out there.

The us government still offers a sweet sweet 26 federal tax credit. Colorado does not offer state solar tax credits. Xcel energy offers the top utility net metering program in colorado. Colorado ranked 11th in the nation for installed solar capacity with 925 8 mw of solar energy installed as of 2016.

Starting in 2020 the value of the tax credit will step down to 26 and then again to 22 in 2021. The itc applies to both residential and commercial systems and there is no cap on its value. This is where colorado is missing the mark on solar policy. The credit is applied to the following tax year so if you spend 10 000 on a new solar system you ll be able to take a credit of 3 000 the next year.

The federal solar tax credit itc don t forget about your federal solar incentives. The federal solar tax credit also known as the investment tax credit itc allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes. The biggest advantages in colorado for installing solar panels are the xcel energy solar rewards program and the 26 federal tax credit. But don t get too down.

The residential renewable energy tax credit as the irs calls it can be an attractive way to save on the significant cost of installing solar panels or roofing. The 30 tax credit applies as long as the home solar system is installed by december 31 2019. You can claim the credit for your primary residence vacation home and for either an existing structure or new construction. Colorado also offers those solar tax exemptions that make doing the right thing easier by reducing cost and uncertainty.

Colorado is home to more than 454 solar companies employing about 6 000 people throughout the state.