The Inflation Reduction Act (H.R. 5376), which was signed into law by President Biden in August 2022, along with providing for jobs and lowering costs for prescription drugs and healthcare, a recent report from the United States Department of Energy (DOE), states that the bill “…makes the single largest investment in climate and energy in American history.” The team from Electricraft, Inc., a leading solar provider to San Luis Obispo County and the Central Coast, has summarized the benefits of investing in solar energy that are included in this act.
What does this mean for solar energy?
The incentives in the IRA are good news for more growth in solar energy and even better news for
- Energy investments in the Inflation Reduction Act (IRA), combined with energy provisions in the Budget Reconciliation bill are projected to reduce greenhouse emissions by 40%.
- The Residential Clean Energy Credit included in the IRA allows for 30% of the total cost of installing solar to be deducted from federal income taxes.
- There is no dollar limitation on the costs incurred to install solar energy or certain solar products.
- The credit is available for the next 10 years, through 2032.
There are also tax credits separate from the IRA that are available for commercial solar installations. There are also incentives available in California for installing solar. Your tax accountant is the best source for learning the details about federal and state solar tax credits and other incentives.
Based on information from the DOE, the San Luis Obispo solar company announces that the following solar equipment is covered in the IRA:
- Solar photovoltaic (PV) panels.
- PV cells used to power an attic fan (but not the fan itself).
- Contractor labor for onsite preparation, assembly, or original installation.
- Permitting fees, inspection costs, and developer fees.
- All equipment needed to get the solar system running, including wiring, inverters, and mounting equipment.
- Storage batteries. (You can claim the tax credit for these even if you buy and install them a year or more after you install the solar system.)
- Sales taxes on eligible expenses.
One of the longest-operating solar companies on the Central Coast, Electricraft, Inc. is a local, family-owned business that was founded in 1984. Electrical and solar technologies are so tightly integrated that it wasn’t long before the well-established electrical company added San Luis Obispo solar services and licensed solar technicians to its team of licensed and experienced electricians.
The professionals at Electricraft, Inc. bring knowledge, years of experience, training, and certification to every project. From residential to commercial and industrial solar systems, look to the professionals at Electricraft for personal, individualized service and guidance. Services include:
- Local, established, trusted business.
- Experienced & knowledgeable.
- Troubleshooting, design, installation, and service.
- High-quality and custom solar panel designs.
- Free estimates.
- Lease options available.
- Low-interest loan/financing program.
- Rooftop and ground systems.
- 25-year product warranty.
- 10-year workmanship warranty.
- Turnkey design, permitting, and installation.
- Troubleshooting service and maintenance.
