Many people think that adding solar power to their homes comes with a large upfront cost that they can’t afford. However, there are three programs available to residents of Illinois that can cut down on the upfront costs associated with installing solar panels and the costs of using solar power. Keep reading to learn everything you need to know about solar tax credits in Illinois.
Federal Solar Investment Tax Credit
ITC, or Investment Tax Credit, is a tax credit available through the federal government, and citizens of Illinois can use it to their advantage. You can receive a 26 percent federal tax credit for any home solar systems purchased and installed before the last day of 2022. This is an excellent way to cut back on upfront costs, especially since the state of Illinois doesn’t have a state tax credit. If you’re looking for a solar and insulation company in Rockford, Illinois, to hire and use for this tax credit, then Greenlink Energy Solutions is happy to help.
Solar Property Tax Exemption
While Illinois doesn’t offer a state tax credit, you can get a property tax exemption if your home increases in value after adding solar power. Suppose your home was previously valued at $300,000 before you added solar power. If it’s valued at $350,000 after adding solar power, you’ll pay your property tax as if your home was still valued at $300,000. As a homeowner, this is an excellent incentive for adding solar power to your home.
Illinois Solar for All Low-Income Community Solar Programs
If the property tax exemption isn’t enough to help you afford solar power for your home, there are other options. The Illinois Solar for All Low-Income Community Solar Program (ILSFA) makes solar panels affordable for households that make 80 percent or less than the median household income in your area. If you qualify for this program, then you’ll pay no upfront cost for the solar panels, instead paying up to 50 percent of the monthly power fee each month. Multifamily buildings can qualify depending on the number of households within the building that make 80 percent or less of the median area income.
Now you know about the solar tax credits in Illinois that can make solar power more affordable for you and your family. If you and your family need solar power or insulation installed, Greenlink Energy Solutions works out of Rockford, Illinois, and is proud to help the area take advantage of federal, state, and local incentives and rebates.