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Writer's pictureLyall Burgess

26% Federal Tax Credit reduced after 2020


Federal Tax Credit

The bar chart above is a good visual of what's happening to the Federal Tax Credit for going solar on your boat - yes, your boat! Essentially this a residential tax credit for going solar at your home. For some people their boat is their home and for many more their boat can be classed as a second home and so take advantage of the credit.


For many years it was a 30% credit, but in 2020 the phasing out began. So it was reduced to 26% in 2020 and in 2021 it will be reduced further to 22% and in 2022 it will gone completely.


Don't forget this is a Federal Tax Credit (not a rebate) and it is on the complete solar system cost so can include solar panels, controllers, wiring, labor and we have had several customers mention they have included their new battery bank (pretty good if it's a Li-ion bank)


As an example of what you might save we have the 2x170W flex panel bundle in our store currently for $1165.00. In 2020 you can receive a 26% Tax Credit which is $302.90, but in 2021 you would only get a 22% Tax Credit which is $256.30 - a difference of $46.60. And don't forget this could also be applied to your labor cost for the install, maybe more system components, battery monitors etc and even the batteries.

We have more details on our Solar Tax Credits page and as always be sure to consult your tax advisor/account for full details and possible State Tax Credits you could also take advantage of.



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