Phoenix, AZ, August 24, 2022 – PGT Solar Solutions, an established Arizona energy consultant wants to spread the word about the passage of the Inflation Reduction Act (IRA). There are many parts of the act that will benefit those who opt to use clean, sustainable energy.
For residential solar installations and others that are less than 1 MW, the ITC will be increased to 30% for 10 years. And very importantly, it is retroactive to January 1, 2022, so those who installed solar this year will reap the same tax benefit. For large projects of over 1 MW, the ITC is more complicated and starts at 6% but can get to 30% by meeting the apprenticeship and prevailing wage requirements. It then awards bonus credits for usage of domestic products, locations, and installations in low-income areas that can even result in up to a 50% tax credit.
There is also a major change that affects non-profits and state and local government entities as it will have a direct pay feature where they can receive the tax benefit even though they have no tax obligations. They will receive a tax refund in the form of a payment.
And additional change applies to batteries. A solar battery will qualify for the 30% tax credit no matter when it’s installed. So, homeowners and businesses can add battery
storage to an existing solar system. This help is a benefit to consumers, and it helps to stabilize the grid.
Switching to an electric vehicle (EV) will also qualify (in some cases) for tax credits. The up-to $7,500 tax credit is back — but the vehicle’s production location and the battery components sources will affect the actual credit amount. The vehicle price and the owner’s income determine eligibility as well. Something new for EVs is a tax credit of up-to
$4,000 for the purchase of a used EV that is priced under $25,000. The good news is that the credits are valid until 2032, so a lot can change to make EVs more affordable and give access to more consumers.
“The changes brought on by the passage of the IRA will help more homeowners save on energy costs by going solar,” stated Greg Field, Principal PGT Solar Solutions. “It is great for consumers and even better for our environments.”
With over a decade of experience designing solar energy systems for homeowners throughout the Phoenix Valley and 1,000s of satisfied customers, they have the expertise to help homeowners build a brighter future and realize immediate electricity cost savings—often providing qualified customers with zero down financing. To learn more, go to pgtsolarsolutions.com