2022 WASHINGTON State Residential Solar Incentives
Washington State Solar Tax Exemption
Here’s how the State Solar Tax Exemption works
Federal Solar Investment Tax Credit (ITC)
The Federal government incentivizes homeowners to purchase solar by reducing the barriers to entry. This incentive lowers your federal tax obligations on a dollar-to-dollar basis, through a cash rebate. There is no ceiling on this tax credit. The Federal Solar Investment Tax Incentive is worth 30% of the total purchase price of your solar system, no matter the system size or cost.
Currently, the 30% Federal Solar Income Tax Credit applies to all solar projects that begin construction in 2022. The 30% tax credit will last through 2033, at which point it will drop to 26%.
For every dollar your solar system costs, the federal government will award you 30 cents back in tax credits. This is how you reduce your overall federal tax liability. This is a dollar-for-dollar tax rebate, not a tax write-off. There is no ceiling on the amount of tax credits you can be awarded – the 30% credit applies, no matter the size of your solar system.
You will receive 30% of the total cost of your solar system on your next year’s tax return. For instance, if the final purchase price of your new solar system is $20,000, you will get an additional $6,000 back from the federal government.
Calculation example 1:
$20,000 cost x 0.30 rebate = $6,000
In this example, you will receive an extra $6,000 back from the federal government.
Calculation example 2:
$15,000 cost x 0.30 rebate = $4,500
In this example, you will receive an extra $4,500 back from the federal government.
Solar Boosts Home Resale Value
Zillow’s findings reflect similar studies published by the Lawrence Berkeley National Renewable Energy Laboratory, which drew on a sample of 23,000 homes across the country.