The federal solar tax credit, previously known as the Investment Tax Credit (ITC), will remain at 30% for Florida homeowners and businesses in 2024. It was initially set to reduce to 22% in 2023 and zero from there, but that won’t be the case. Here is a brief overview of the future of solar tax credits in Florida and what it means for those interested in switching to solar energy.
Federal Tax Credits Extended
The federal solar tax credit was set to expire in 2024. It would no longer be available for new solar installations, making it less appealing for homeowners and businesses to invest in renewable energy. However, this won’t be the case.
A bill extended the solar credit benefit by another ten years, meaning it will end in 2033. That means you can still qualify for the 30% on your federal taxes until then. This extension is great news for Florida residents.
If you’ve considered installing a new solar system, this is your chance. While the initial cost can be high, the tax credit extension makes it a worthwhile investment. You get to save thousands of dollars and still enjoy free sun energy.
But how much would it save you in dollar-for-dollar terms? Here is a breakdown.
Typically, installing a standard 5kW solar panel system would cost you about $14,892 gross. That’s before factoring in any incentives or rebates. With the 30% tax credit, you save a cool $4,467.6. That brings down your solar investment cost to $10,424.4.
State Solar Tax Incentives
Aside from the federal tax credit, Florida residents will continue enjoying state-level solar incentives. While the Sunshine State has a statewide solar tax credit, it has a few programs to promote solar adoption. These include sales tax exemptions and property tax abatement.
The solar sales tax exemption is a permanent benefit that won’t go anywhere in 2024. It provides a 6% tax discount on the cost of a new solar system. It offers significant savings, especially for larger systems. Plus, it covers everything from solar panels to solar heating systems.
Additionally, Florida offers a property tax abatement that exempts any added value to your home from solar panel installations. Usually, any added value to your property would increase your property taxes. However, with the abatement, homeowners can enjoy the benefits of solar energy without additional costs. The incentive will continue in 2024 until 2037. (1)
Get Your Solar System Today
The extended federal tax credit and state-level incentives make investing in solar energy affordable. You save thousands of dollars while enjoying clean and free energy. However, you need certified equipment to benefit. That’s where we come in.
At Wayne Solar, we provide certified top-quality solar products and expert installation services across Florida. Take advantage of the extended deadlines. We are privileged to serve Ormond Beach, Port Orange, Jacksonville, St. Augustine, and Ponce Inlet, as well as the nearby communities. Contact us today via phone ((386) 673-9720) or email to get a quote.
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