Tax Credits and Incentives for Solar Panels

Residential Example:
Solar systems qualify for a 30% Federal Tax Credit – up to $2,000. A tax credit is a dollar-for-dollar reduction in the tax payment required by a person and typically has a greater value than a tax write-off. Learn more on the IRS website.

This is an example of a Residential Hot Water System:

Cost of Installation and Solar Unit- $10,000
State of Illinois Rebate: -$ 3,000
Federal Solar Tax Credit: -$ 2,000
$10,000 Solar Hot Water System now only cost 50% of orginal cost, $ 5,000, with the current government incentives.

Commercial Systems are another story:
Solar systems qualify for a 30% tax credit with no limit. A tax credit is a dollar-for-dollar reduction in the tax payment required by a person and typically has a greater value than a tax write-off. In addition, an accelerated 5-year tax write-off is available for businesses that have solar energy systems. Business can also take advantage of the 30% rebate from the state of Illinois. To learn more about the Federal Incentives, click here.

Some of the Additional Incentives:

• Exemptions from property tax for solar systems

• Additional grants available through the Illinois Clean Energy Community Foundation for municipalities and not-for-profit groups.

With this financial help from the Illinois Department of Commerce and Economic Opportunity, the Federal Government and other funding sources, solar systems are more affordable than ever!

Keep Reading and Check out these Articles:

1. New Housing Bill Approved by Senate
2. Federal Tax Credits for Energy Efficiency
3. Chevy gets Volted with Tax Incentive
4. Solar Energy
5. Aurora Remodeling