How do the changes to the Investment Tax Credit (ITC) for residential solar projects affect the MyGenTM system?
The following information is intended as general guidelines and not authoritative advice. Consult a tax professional for advice on how the ITC applies to specific situations. 1. When will the new ITC be in effect? The new ITC will apply to projects placed into service between January 1, 2009 and December 31, 2016. The new rules for the ITC will not be retroactive, so the restrictions on residential installations will remain in effect through 2008. 2. How did the residential ITC change? Homeowners will be able to claim the full 30 percent of the cost of a solar installation as a federal tax credit; the $2,000-cap will no longer apply. 3. What happens if a homeowner can’t use the full credit in the year of installation? Any unused portion of the residential ITC can be carried into future years. 4. How does the alternative minimum tax (AMT) affect the ITC? Tax payers who claim the ITC should no longer be penalized by the AMT calculations, so AMT filers should be able to claim the full ITC
