Subsidies for solar systems allow taxpayers to maintain low costs on projects that would have otherwise not be viable due to tariffs on off shore manufactured panels. These subsidies help bolster a once thriving industry that has been suffering under recent international trade rule changes.
There are only three things certain in this world: death, taxes, and that solar is unstoppable. The IRS has effectively extended solar subsidies by up to four years. Previously, to qualify for the full 30% Investment Tax Credit (ITC) solar projects had to be COMPLETED before January 1, 2020. Now, they only have to BEGIN construction before January 1, 2020. To get the full tax credit of 30% the project has to be finished before January 1, 2024. Projects begun before January 1, 2021 will get a 26% tax credit, but must also be completed by January 1, 2024. Projects begun before January 1, 2022 will get a 22% tax credit, but must also be completed by January 1, 2024. According to IRS Notice 2018-59, to qualify as having begun construction there are “two methods for taxpayers to establish the beginning of construction (Physical Work Test and Five Percent Safe Harbor)”. Under the first method, physical work does not even have to begin on the site. Solar equipment can actually begin being assembled offsite. Under the second method, only 5% of the cost of the project must be spent excluding land costs. The notice states, “Both methods require that […]
Click here to view original web page at IRS Extends Solar Subsidies Up To 4 Years!
