What Incentives Are Available for Solar in Florida?
There are three primary incentives available for solar in Florida. One incentive, the federal Investment Tax Credit (ITC), allows you to recover money spent on your system in the form of a credit on your federal income taxes. In 2020, the ITC is 26% of the contract price. The ITC is available to solar and storage customers anywhere in the country. Unless an extension is passed, the ITC will decrease to 22% in 2021 and disappear completely for residential projects in 2022. In order to claim the tax credit for a given tax year, your system must be completely installed in that year. Therefore, to get the full 26% tax credit for 2020, your system installation must be completed by January 1, 2021.
The other two incentives are specific to Florida and exempt solar from two forms of taxes. These incentives mean you don’t have to pay sales tax on a solar installation and that your solar array will not be included in the value of your home set by the tax collector’s office to determine your property taxes. Thus while solar can increase your home’s value by 2-4%, you will not pay additional property taxes.
In addition to these three incentives available for all Floridians, certain municipalities may have additional incentives available. At the end of this article we include a link to a database of solar incentives by municipality.
The Federal Investment Tax Credit for Solar
The best incentive for people in Florida who choose solar power is the Federal Investment Tax Credit (ITC). In 2020, this tax credit gives solar customers 26% of the cost of the system back in the form of a federal tax credit. This is a very significant incentive but will be decreasing in 2021 and phased out completely for residential solar in 2022. Your project must be completely installed within the calendar year in order to claim the ITC rate for that year.
Claiming the ITC
The ITC is a tax credit, and therefore claiming the ITC will result in a decreased federal tax burden for your family. It is not a rebate, and therefore the ITC will only benefit those who pay federal taxes. Goldin Solar is unable to process ITC claims for you. We suggest you work with a tax professional to claim your solar ITC.
State Incentives for Solar in Florida
Reducing Tax Liability
Solar power systems in Florida are exempt from both sales tax and property tax. This means that the cost of solar is cheaper when compared with other home improvement options, for which you could be assessed both sales and property taxes. Since solar has been shown to increase your home’s value, its exemption from property valuation for tax purposes can bring significant savings.
Florida does not have any statewide credit programs for solar power. Therefore, the 26% federal tax credit is the most significant credit you can receive for going solar in Florida.
However, there are a number of other options that could be available to you in Florida, depending on your location and installation. You can find more information about grant programs, incentives for green construction, and incentives at the Database for Solar Incentives by state.