Don’t Wait—Claim the 26% Commercial Solar Tax Credit Today!
Aug. 04, 2022
The first half of 2022 has flown by, and if you’re operating a business, you likely still have plenty of initiatives you want to accomplish and financial goals to hit by the end of the year.
If installing a commercial solar system for your Boston-area business is on your 2022 to-do list—and you’re looking to maximize your company’s savings and solar incentives—now is the time to act to qualify for the current 26% federal solar tax credit in 2022.
Read on for more about this commercial solar incentive, and what you’ll need to do this year to qualify for the 26% rate.
What is the Solar Investment Tax Credit for Commercial Solar Panel Installation?
The solar tax credit, officially called the Solar Investment Tax Credit or ITC, is a federal solar incentive that allows owners of residential and commercial solar installments to claim a tax credit on their federal taxes based on a percentage of their total solar system costs.
In 2022, the commercial federal solar tax credit is 26%, but the rate is scheduled to drop down to 22% in 2023, and then to a permanent 10% in 2024.
For many commercial solar installation projects, that 4% can make a dramatic difference to a company’s bottom line and total savings, which is why it’s important to make sure your business is able to lock in the higher tax credit rate available this year.
How Do I Make Sure My Business Qualifies for the Full 26% Solar Tax Credit?
For a commercial solar energy system to be eligible for the federal solar tax credit for solar panels in 2022 and qualify for the 26% rate, the project needs to commence construction or meet a 5% safe harbor rule before the end of 2022.
What does this mean? It means that by the end of 2022, as long as you can a) spend at least 5% of your total solar costs, or b) begin construction, you can take advantage of the full 26% tax credit.
But don’t wait until the last minute! Even though safe harbor gives your business some breathing room, starting your search for a solar provider near you in December isn’t the best plan of action. Going solar is a good return on investment for your business—ensuring that you maximize one of the best solar incentives currently available is even better!
Get Help from Boston’s Leading Commercial Solar Company
Based on the latest federal solar tax credit information, this year is the best opportunity your company will have to earn the most in federal tax credits. Going solar this year will not only reduce your company’s operating expenses but will help your company become a greener, more environmentally friendly business.
Boston Solar has been empowering the Commonwealth for more than 10 years. A proud partner of the Boston Red Sox, we’ve helped more than 5,000 Massachusetts homeowners and businesses go solar. Talk to our team today about designing and installing a custom commercial solar energy system that meets your needs, including battery storage and commercial solar financing options.
There’s still time for your business to qualify for the 26% federal solar tax credit in 2022. Call 617-858-1645 or contact us to go solar.