Understand Your Tax Credits

Federal tax credits for solar energy systems have been extended and are available at 30% through Dec 31, 2019. The credit decreases to 26% for tax year 2020, decreases to 22% for tax year 2021 then expires Dec 31, 2021. More specifically:

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021
  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2021.
  • The home served by the system does not have to be the taxpayer’s principal residence.

Read the specifics here.

State tax credits for Montana: Residential taxpayers who install alternative energy (non-fossil fueled) systems are eligible for tax credit up to $500 per individual or $1,000 per household if married taxpayers file jointly. Read the specifics here.

A Fun Way to View Solar in Missoula!

Check out this interactive flowchart from Climate Smart! Or view the print version here.