When it comes to power and electricity, tax credits and incentives walk hand in hand in the entire scenario. It has been long noted that power obtained from conventional sources of energy like coal and other fossil fuels, though efficient, but are much more expensive as compared to green energy sources. Thermal power obtained from fossil fuels does not even provide people the advantages of availing state and federal tax credits.
Solar tax credits are being introduced by numerous governments across the globe ashuge incentives for making solar power even more affordable reducing project costs by up to 30% to 35%. This is with a primary objective of completely shifting nations to use solar power, which is zero polluting and eco-friendly in comparison to thermal power sources.
Read More: The Future of Solar Energy in Hawaii
Introduction of solar tax credits and other incentives by Governmentsare said to play a major rolein reducing the cost of a solar energy system. Anyone who ownsa Solar energy system is eligible for the solar tax credit. This benefit is not only for those who have the tax liability to claim the credit. Even if you don’t have enough tax liability in one year, you can “roll over” the remaining credits into future years for as long as the tax credit is in effect.
Earlier owners of new solar energy systems could only claim the tax credit once their system was operational. Now, theycan claim it as soon as the construction of the system is complete. The new legislations allow them to do so as long as the system is operational by December 31, 2023.
PRO SOLAR HAWAII as the name suggests is a Hawaii based organization that provides complete solar power systems and solar panel installation. The company offers grid tie systems, off grid systems, and emergency backup systems as well.
The services of PRO SOLAR HAWAII have been critically and commercially praised by experts as they effectively help reducing or eliminating electric bills for residential and commercial clients with the help of complete solar power systems and solar panel installation.
Furthermore, the organization has been effective in providing legal tax credit benefits on solar power with an aim to reduce the cost of solar energy systems both on a state and federal level. According to the information provided on their official website, the state tax credits and federal tax credits guidelines are as follows:
The bottom-line of the state tax credits is that the creditof the system for the solar water heating requirement for new residential constructionshall be reduced by thirty-five per cent of the actual system cost, if all or part of the system is used as a substitute renewable energy technology.
The federal solar tax credit allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. This is also known asthe investment tax credit (ITC). The following three product categories, namely; solar energy systems, geothermal heat pumpsand small wind turbines (residential), are eligible for a tax credit of 30% of the cost with no upper limit until December 31, 2018.
Residents that qualify to avail these taxes include:
However, this concept does not apply for rentals.**For more information about the terms and conditions of these two tax credits, visit the PRO SOLAR HAWAII official website.