NJ Solar Tax Credit Explained
The rising cost of electricity has prompted more people to look into alternative energy sources, such as solar energy. Fortunately, New Jersey residents can take advantage of great incentives that help make solar energy more afforadable than ever.
The following guide covers everything you need to know about the NJ Solar Tax Credit and how to qualify for this incentive!
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What Is New Jersey's Solar Tax Credit?
If you live in New Jersey you can significantly reduce the cost of installing solar panels through the New Jersey Solar Tax Credit.
The NJ Solar Tax Credit, also known as the Solar Investment Tax Credit (ITC), is a federal tax incentive that allows you to deduct 26 percent of the cost of installing a solar energy system from your federal income taxes. This tax credit applies to both residential and commercial systems in the State of New Jersey.
While the solar tax credit in NJ has been around since 2005, the amount of credit you can claim is scheduled to decrease to 22% for solar panel systems installed next year. Additionally, this program is slated to end in 2024 so it's important to act quickly.
Am I Eligible for the NJ Solar Panel Tax Credit?
There are four main considerations that will determine if you meet the criteria for the Solar Tax Credit in 2022:
Installation Date: Your solar panel system must have been installed between January 1, 2006, and December 31, 2023.
Original Installation: Your solar panel system is new and original. “New to you” or repurposed existing systems will render you unqualified for the Solar Tax Credit 2022.
Location: The solar panel system is installed in your primary or secondary residence within the US.
Ownership: You are the sole owner of the solar panel system. You are not eligible for the NJ Solar Tax Credit 2022 if you are leasing the system or are under an agreement to purchase electricity generated by said system, including a PPA or a solar power purchase agreement.
What Other Solar Incentives Are Available in New Jersey?
In addition to the solar investment tax credit, the State of New Jersey offers several other incentives for solar energy. NJ residents can take advantage of property tax exemptions, sales tax exemptions, renewable energy credits and many other financial incentives.
Read our complete guide to NJ Solar Incentives for more information about these programs and eligibility.
Get Started With Solar Today!
Altogether, the NJ solar panel tax credit and the additional solar incentives mean you can reap the cost of your initial solar investment faster. It grants you peace of mind knowing that your energy source is clean and renewable and keeps your electricity bill as low as possible!
Do you live in New Jersey?
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Yes, qualified homeowners in New Jersey may be eligible for a solar tax credit of up to 30% of the cost of the system. Find out if your home can qualify for a solar tax credit in NJ.
The NJ Solar Tax Credit, also known as the Solar Investment Tax Credit (ITC), is a federal tax incentive that allows you to deduct 26 percent of the cost of installing a solar energy system from your federal income taxes. This tax credit applies to both residential and commercial systems in the State of New Jersey.
In addition to the solar investment tax credit, the State of New Jersey offers several other incentives for solar energy. NJ residents can take advantage of property tax exemptions, sales tax exemptions, renewable energy credits and many other financial incentives.
Read our complete guide to NJ Solar Incentives for more information about these programs and eligibility.
