Frequently on Chat Support questions will arise concerning the Federal Tax Credit as it pertains to the pricing page. Being knowledgeable about how the credit works and what it is will help when Reps chat in about issues with the credit and how it pertains to the pricing page.
First up what is a tax credit? A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. For example, claiming a $1,000 federal tax credit reduces your federal income taxes due by $1,000.
The credit that shows on the pricing page is the Federal Solar Energy Credit. This is a tax credit that can be claimed on federal income taxes for a percentage of the cost of a solar photovoltaic (PV) system.
In December 2020, Congress passed an extension of the ITC, which provides a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023. (Systems installed before December 31, 2019 were eligible for a 30% tax credit.) The tax credit expires starting in 2024 unless Congress renews it.
There is no maximum amount that can be claimed.
Some frequently asked questions from Sales Reps:
How does the Federal tax credit affect the monthly payments? It does not. The lender does not get that directly EVER.
Is everyone eligible for the Federal Tax Credit? No. It depends on the individual tax situation of each customer. It is not a guarantee that the customer will qualify for it, that the system will qualify for it or that there will be any tax liability to use it against.
If my client has no tax liability will the IRS issue a refund for the credit? No. This credit is a non-refundable credit. However, it can be carried forward if the whole credit was more than the customers annual liability.
Does the federal tax credit affect any of the other rebates? No. But other rebates can affect the amount of the federal rebate.
Here is a webpage to share if Sales Reps need more information for their customers.