The Solar Tax Credit - What You Need to Know in 2023

 

image-1

Earlier this year, we wrote all about the brand-new 2022 Inflation Reduction Act, and its impact on solar energy consumers via tax incentives. As we’re gearing up for the new year, it’s time to do an updated breakdown of what this solar tax credit is, how it works, and why you should care about it.

Read on for everything you need to know about the solar tax credit in 2023!

In case you missed the news this summer, here’s a quick recap: the federal solar tax credit, previously set to cap out at 22% in 2023, was extended and increased to qualify homeowners for a 30% nonrefundable credit on their federal income taxes for the next decade. There’s no dollar limit on those expenses; you’re entitled to that 30% tax break whether you spend $20,000 or $100,000 on costs associated with a residential solar system.

Here’s how your income comes into play.

Let’s say you have $30k of a tax credit to use, but your yearly income isn’t high enough for you to receive it all in one lump sum. Don’t worry: the good news is you can spread it out over five years! Your solar tax credit does not have to all be taken in year one.

If you’re planning to go solar, consult a tax professional before making a decision.

Our MSS experts are always happy to provide information and insight, but we are not licensed tax advisors. Speaking to a tax professional will help guide you in the right direction for your venture into solar energy in 2023! The bottom line: if you don’t use a CPA, you might want to this year if you’re considering going solar. Then, we’re happy to take the reigns. 

Patience is key.

It’s not breaking news that the government tends to move slowly. The process of receiving your solar tax credit doesn’t happen overnight, nor in just a month or two. This tax incentive runs through the federal government, which means it will often take longer than expected! Think of it this way: it’s not Amazon Prime for your refund.

At the end of the day, it’s your money–and it’s worth taking the time to do things the correct way. Trust the process, be patient, and the benefits will come back. Ready to go solar in 2023? MSS is here to help start the process!

 

 

backup battery or gas generator

MSS Content Team

Written by MSS Content Team

Have a comment? Let us hear from you!

How to Pick the Right Solar Contractor

When it comes to making the switch to solar energy, choosing the right solar contractor will make all the difference in the world. Michigan Solar Solutions is here to help you make an informed decision, with the...

Achieve Your Energy Reduction Goals with Michigan Solar Solutions

Michigan Solar Solutions understands the financial priorities of businesses like yours. In this blog, we'll explore why Energy Reduction Goals are vital for your financial success and how MSS can be your strategic ally...

Why Your 2024 Business Budgeting Plan Should Include Solar

Energy Independence: Saving You Money on Your Energy Bill

The Average Return on Solar in Michigan is Over 10% Per Year

Michigan Solar Solutions - Solar Panel Installation Company - icon-sun

Want to discover how much you’ll save?

Using only satellite imagery and your most recent electric bill, our solar experts can provide a detailed proposal with up to 98% accuracy. The best part is there’s zero obligation and zero pressure. We’re confident once you see what you can save, you’ll upgrade to solar.

Is Solar Right for Me?