Posted by James Bartley on Jul 23, 2019 3:03:27 PM
Scott: Don't miss your chance for Uncle Sam to give you money.
Scott: So you're probably wondering, how in the world do you get Uncle Sam to give you money?
Sam: Well Scott, that's pretty simple. There's something you got to do, it's called buy Solar. Let me spell it out for you, buy Solar.
Scott: This is correct. When you buy Solar, you are eligible for the federal tax credit.
Sam: That's good handwriting, by the way.
Scott: I appreciate that, thanks Sam.
Sam: Yeah, no problem.
Sam: So let's talk about three things, right? The first one is number one, 30% of system costs. I'll squeeze in that down there, you can still read it right?
Sam: Number two, are you eligible, right?
Sam: And then number three, it's the end of the world, it's the end of the world.
Scott: Sam, I'm not sure what you're talking about it.
Sam: As we know it.
Scott: It's the end of the world, what do you mean it's the end of the world?
Sam: As we know it.
Scott: I don't-
Sam: Okay. When the 30% federal tax incentive goes away, it's the end of the world for everybody, it just doesn't make sense. I just can't make this make sense for you, me.
Scott: Whoa, whoa, whoa Sam, whoa. It's not the end of the world now.
Sam: Buy now, buy now, buy now.
Scott: Sam, Sam, Sam. So look, there's a lot of guys trying to make you believe that it's going away this year, but the truth is, it's going to be phased out over the next three years. So through 2019, it is 30%. What's that mean on an average system cost of $30000? That would be the same as a $9000 tax credit. Moving after 2019 into 2020, on the same $30000 system, the tax credit will go down to 26%, which is $7800. And going into 2021, it goes down to 22%, which is $6600. Going into 2022, that's when the tax credit will go to zero.
Sam: It's the end of the world as we know it.
Scott: No, no it's still not the end of the world. Solar is still going to make great sense. It's still a smart investment because of how much money it's still going to save you by locking in your utility rate over time.
Scott: So going into the second point, are you eligible?
Sam: And you get a solar system, and you get a solar system, and you get a solar system and you get a solar system.
Scott: Yes, yes, Everyone is eligible for solar systems Sam, but the truth be told about the tax credit is yeah, you'll have this availability of whatever the set amount is, but the truth about whether you can take advantage of all of it, is just dependent on your tax liabilities. Do you pay in taxes or do you not? If you do not pay in taxes, you can expect to take advantage of all of these awesome deals that are coming from this. If you do pay in taxes, you have up to five years to reclaim that over that set amount of time.
Scott: And that brings me to the 30% of the system cost.
Sam: 30% off the cost. Right off the top.
Scott: Sam, Sam, again no. Calm down buddy. So it's not a 30% discount. This isn't coming off the upfront price of Solar. This is a tax credit that comes later in the year, filed on your taxes, okay?
Scott: Is that kind of sticking with you?
Sam: I'm feeling it, but it's not really sticking.
Scott: Okay, well we can go a little bit farther. So not only that, but say in our area, there's a rebate available. We have Empire and/or Liberty utilities that has a rebate available for your system purchase. And in that case, let's just assume it's $2500. So if you got a $2500 rebate, you would have your system cost of $30000 minus that rebate amount, which would be $2500 and then you take the 30%, 26% or 22% of that remaining amount and that is what gives you what your tax credit would be.
Sam: I like it. I really think it works.
Scott: It does work.
Sam: Can we just buy now?
Scott: Well I mean absolutely. Buying now is great. You get the higher amount in the tax credit, but even when the tax credits go away, it still makes sense. The amount it's going to save you, especially with the fact that everyone knows the utility companies aren't going to lower their prices, they only go up. So it's always going to make sense. Now obviously, it's just more of an incentive to do so.
Sam: I think that's beautiful, let's roll with it.
Scott: It is beautiful.
Sam: You want to tell some people about it?
Scott: Let's tell people about it. Hey, thank you guys for watching. Thank you Sam for coming out and helping.
Sam: Yeah, whatever.
Scott: This is Solar Flair, not the explosion type.
Topics: Solar Flair