Solar Panels Colorado Tax Credit

More than 510 million in colorado solar investments were made in 2016.

Solar panels colorado tax credit. Colorado does not offer state solar tax credits. According to the solar energy industries association. You can claim the credit for your primary residence vacation home and for either an existing structure or new construction. The itc applies to both residential and commercial systems and there is no cap on its value.

After 2021 the tax credit for residential solar ends. Colorado ranked 11th in the nation for installed solar capacity with 925 8 mw of solar energy installed as of 2016. An average sized residential solar. The federal solar tax credit itc don t forget about your federal solar incentives.

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. Colorado also offers those solar tax exemptions that make doing the right thing easier by reducing cost and uncertainty. The biggest advantages in colorado for installing solar panels are the xcel energy solar rewards program and the 26 federal tax credit. A solar power tax credit has proven to be a great help to citizens of forward looking states.

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. This is where colorado is missing the mark on solar policy. This tax credit is available until 2022. The us government still offers a sweet sweet 26 federal tax credit.

The 30 tax credit applies as long as the home solar system is installed by december 31 2019. Starting in 2020 the value of the tax credit will step down to 26 and then again to 22 in 2021. Xcel energy offers the top utility net metering program in colorado. 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.

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