A new scam is attempting to take advantage of the Inflation Reduction Act. Certain salespeople and companies claim that as part of the IRA, you can claim a federal solar tax credit for installing solar panels. The government is in fact offering up to a 30% tax credit for certain solar panels through 2032. These solar panels cannot be structural components of a roof or rafters, since they have to serve both a solar electric generation and structural support.

Many of these scams will claim that the credit is a limited time offer and is going away soon. This isn’t true, since the credit will sit at 30% through 2023 and decrease afterwards. It’s an attempt to push a sale on the consumer. Be sure to properly research the solar panels being offered to see if they apply for the credit, or to contact a tax professional for more information. Shady installation companies may also claim that their company will cover the cost of installation, or pressure you into signing paperwork without any review time. Scammers may attempt to push credits that the consumer isn’t entitled to as an attempt to sell their product. Many of these scams are misleading and suggest that the government will send a check in the mail as a solar tax credit. In reality, your solar use applies to your federal income tax and may reduce your payment.

The Inflation Reduction Act was passed in 2022 and will remain at 30% through 2032, before decreasing to 26% in 2033 and 22% in 2034. Make sure to properly research the details of the act before committing to solar power. If you have questions, reach out to us at info@beachcpafirm.com.