Tax Credit Eligibility Explained
Tax Credit Eligibility Requirements
To be eligible for the 26% Federal Tax Credit, you must meet the following requirements:
You must be the title holder of your property where solar is installed
You must own the solar energy system
Your solar energy systems must be installed by December 31, 2020
You must have federal tax liability to offset price of system installation
We offer exclusive ownership of the solar energy system to you with the installation, so there is no issue with system ownership getting in the way of you claiming your Federal Tax Credit.
This Tax Credit Will Not Last Forever
The Federal Tax Credit is not guaranteed to stay in place for very long.
January 1, 2021 it will drop to 22%
January 1, 2022 it will drop to 10%
The Federal Tax Credit expires after 2022
* Those interested in going solar and taking full advantage of the Federal Tax Credit are advised to act very quickly.
Optimizing the Tax Credit to pay down your GST Loan
CGST’s loan is formulated to be flexible, convenient, and affordable. It’s intelligently configured so that if you use your Federal Tax Credit or other savings to pay down your loan balance by 26% within 18 months, you’ll also lock in a low monthly payment for the duration of the loan. Here’s how it works: For the first 18 months of your loan, your monthly loan payment will be the amount quoted to you in your loan agreement. After 18 months, GST readjusts your monthly loan payment depending on what percentage of the loan you paid down. Here’s how the adjustment works: If you make the entire 26% payment by month 18, you will lock in the low monthly payment you started with. If you pay down less than 26%, your monthly payments will go up after month 18. If you pay down more than 26%, your monthly payments will go down after month 18. It's your choice!
Bottom line: Regardless of what amount pay down, your interest rate will never change, and you will never have to pay more than your total loan amount (unless you incur late fees). We highly recommend that you consult a tax adviser about your personal Federal Tax Credit eligibility to determine if you can take advantage of the tax credit and apply it to your loan.
To see if you qualify, or to get more information on how solar energy can help you save money and reduce utility company dependency, call (314) 703-3888 and a solar consultant will be able to walk you through the solar process and answer all of your questions. * Applicability of Federal & State Tax Credits is dependent on your particular financial situation. If you have any additional concerns, please consult a tax professional regarding your eligibility.