There has never been a better time to go solar! If you haven’t been following the news on the latest Inflation Reduction Act (IRA) and the Solar Investment Tax Credit (ITC), then Renewable Energy Design Group (RED Group) has all the latest details for you.
We dive into the updates and topics in the blog below. Also, be sure to also check out this past blog post on tax credits and incentives as well for some original information on IRA and ITC we posted in August when the act was set to pass.
Latest Updates on the IRA and Solar ITC
Previously, the ITC, which is currently a 26%tax credit for 2022, was set to diminish each year. Now, the IRA sets the credit at 30% until 2032! For commercial projects developed in certain communities, including low-income communities and affordable housing, there is an additional adder of 20%. Therefore, the ITC could effectively reduce costs by 50% for some projects.
Nonprofit Benefits of the IRA
Nonprofits also can significantly benefit from the latest updates to the ITC. Under the new IRA, nonprofits have a direct payment option of the ITC. This includes nonprofits, such as affordable housing developers, community-based organizations, and state, local and tribal governments. Consequently, these nonprofits will receive the benefits of the ITC as an upfront payment, rather than a tax credit. This update means there is a more level playing field for nonprofits and provides an opportunity for them to greatly reduce their costs if they choose to go solar.
Take Advantage of the ITC and Go Solar Now!
RED Group understands all the intricacies of solar installation and we are happy to answer any of your questions. If you have questions or are ready to request a solar energy quote for your business, nonprofit, or home, then give us a call at 877-432-0857. The IRA and Solar ITC make this a great time to go solar! Don’t miss out on these great credits!