Opções de ações de imposto de renda do estado da pensilvânia

Rendimento Salarial e Salarial.
Tributação de Salários e Salários.
Como empregado, seu trabalho é remunerado na forma de salários, salário e / ou gorjetas. Essa compensação é tributada por vários impostos federais e estaduais. Alguns desses impostos são pagos pelo funcionário através de retenção, e alguns são pagos pelo empregador. Existem pelo menos quatro impostos federais sobre salários e salários, mais impostos estaduais e locais.
Imposto de Renda Federal.
O governo federal dos EUA impõe imposto de renda sobre salários e vencimentos.
Este é o imposto que é calculado no Formulário 1040 a cada ano. A alíquota do imposto de renda federal aumenta gradualmente ou progressivamente à medida que a renda aumenta, e várias deduções, isenções ou créditos fiscais reduzem o imposto de renda federal. O imposto de renda federal é deduzido da remuneração total de um empregado na forma de retenção na folha de pagamento. Esteja ciente de que o montante do imposto retido sobre os salários pode ser maior ou menor do que o valor real do imposto federal devido ao governo. O valor real do imposto de renda federal é calculado no Formulário 1040. Cada funcionário pode alterar o valor do imposto de renda federal deduzido de cada salário ajustando o número de isenções de retenção utilizando o Formulário W-4. Este formulário, o W-4, pode ser alterado a qualquer momento durante o seu emprego. Ajustar sua retenção irá alterar somente as retenções de imposto de renda federais e estaduais, não suas retenções na Previdência Social e no Medicare.
Imposto de Medicare.
O imposto de Medicare é um imposto fixo a uma taxa de 2,9% sobre todos os rendimentos de compensação. Metade do imposto do Medicare, ou 1,45%, é pago pelo empregador. A outra metade do imposto do Medicare, também de 1,45%, é paga por você, o empregado. O imposto do Medicare é deduzido imediatamente da remuneração total de um empregado como retenção na folha de pagamento.
Imposto sobre seguranca Social.
O imposto de seguridade social é um imposto de taxa fixa com limite máximo. O imposto da Previdência Social é uma taxa fixa de 12,4% sobre todas as remunerações, até um valor máximo de compensação de US $ 118.500 para 2015. Esse valor de US $ 118.500 é chamado de base salarial da Previdência Social. O montante da base salarial é fixado anualmente pela Administração da Segurança Social. Como o imposto do Medicare, o imposto de seguridade social é pago pela metade pelo empregador e metade pelo empregado. O empregador paga 6,2% da remuneração de um empregado pela Segurança Social e o empregado paga 6,2%.
Somente para 2011 e 2012, a alíquota do imposto previdenciário foi reduzida para 10,4%, com o empregador pagando 6,2% e os empregados pagando 4,2%.
Compensação isenta de impostos da seguridade social e do Medicare.
Há apenas um punhado de itens de compensação salarial que podem ser isentos dos impostos da Previdência Social e do Medicare:
Reembolsos do empregador ao empregado sob um plano responsável, Salários pagos a menores de 17 anos de idade empregados por seus pais, Prêmios de seguro médico (tanto pagos pelo empregador quanto pagos pelo empregado), Contribuições do empregador para um plano de poupança-reforma, Termo do Grupo seguro de vida até $ 50.000 em cobertura, Contribuições para uma conta de poupança de saúde, Pagamento por doença a longo prazo (após 6 meses desde que o empregado trabalhou pela última vez), Determinados tipos de salários recebidos pelos alunos por trabalharem na universidade ou faculdade. Prêmios de realização de bens pessoais tangíveis de até US $ 1.600, Valor de instalações esportivas operadas por um empregador para uso exclusivo dos funcionários, seus cônjuges e dependentes, Benefícios de cuidados dependentes de até US $ 5.000,00 (US $ 2.500,00 para casados ​​arquivados separadamente), Assistência educacional até US $ 5.250,00 Descontos de funcionários de até 20%, telefones celulares fornecidos pelo empregador, se fornecidos por razões comerciais não compensatórias, alojamento fornecido pelo empregador nas instalações comerciais, se fornecido como condição de emprego, refeições fornecidas pelo empregador nas instalações da empresa para conveniência do empregador, e Benefícios de transporte para veículos rodoviários, passes de trânsito, estacionamento e despesas com transporte de bicicletas.
Imposto de Renda do Estado.
Os governos estaduais impõem impostos sobre salários e salários muito da mesma forma que o governo federal faz. Alguns estados têm uma alíquota de imposto fixa (como a taxa fixa de 3,07% da Pensilvânia), outros estados têm alíquotas progressivas ou graduais, e ainda outros estados não têm imposto de renda. Muitos estados utilizarão o valor do salário tributável federal ao calcular impostos estaduais, enquanto outros estados terão um cálculo separado para o que constitui os salários tributáveis.
Impostos estatais de seguro obrigatório.
Vários estados financiam programas de benefícios de seguro social por meio de impostos sobre salários e vencimentos. Exemplos incluem os fundos estaduais de seguro de invalidez operados pela Califórnia e Nova York.
Imposto de Renda da Cidade, do Condado e do Distrito Escolar.
Cidades e localidades em todo o país impõem seus próprios impostos sobre a renda. A cidade de Nova York é talvez o exemplo mais famoso de um imposto de renda municipal. Alguns impostos locais são impostos no nível da cidade (como em Ohio), outros impostos são impostos no nível do condado (como Indiana), enquanto outros impostos são estabelecidos por um distrito escolar (como em Iowa).
Impostos somente ao empregador sobre salário e salários.
Além dos impostos que são impostos ao empregado, o empregador incorre em impostos adicionais sobre os salários.
Seguro Federal de Desemprego a uma taxa de 6,2% é imposto sobre os primeiros US $ 7.000 de salários. A taxa federal de 6,2% pode ser reduzida para 0,8% com base na contribuição para um fundo estadual de seguro-desemprego.
As taxas de seguro de desemprego estadual variam de acordo com o estado, mas muitas vezes são impostas à mesma base salarial de US $ 7.000.
Impostos sobre o rendimento da gorjeta.
As dicas são tributáveis ​​da mesma maneira que os salários são tributados. Os funcionários que recebem pelo menos US $ 20 em receitas de gorjetas por mês são obrigados a informar o valor total das gorjetas recebidas ao seu empregador para que os impostos possam ser calculados e retidos. Quaisquer dicas não relatadas ao empregador ainda são relatadas em sua declaração de imposto (como salários adicionais no Formulário 1040, linha 7) e você também calculará quaisquer taxas de Seguro Social e Medicare devidas nessas gorjetas (Formulário 4137).
Horas extras, bônus e outros salários suplementares.
Bônus e horas extras são tributados da mesma forma que os salários. Uma vez que as tabelas de retenção na folha de pagamento são graduadas com base na renda, horas extras e bônus podem atrair uma retenção maior do imposto de renda federal e estadual comparado ao seu pagamento regular.
Mudar de Empregadores ou Trabalhar para Mais de um Empregador em um Ano.
Devido às taxas de imposto graduadas incorporadas nas tabelas de retenção na folha de pagamento emitidas pelo IRS, quando um empregado começa a trabalhar para um novo empregador ou assume um segundo emprego, existe a possibilidade de retenção de imposto de renda federal e estadual ser menor do que o montante do imposto realmente devido. Os funcionários que trabalham em segundo emprego podem atenuar essa possibilidade, reivindicando zero provisões de retenção na fonte em seu W-4, ou solicitando que o imposto adicional seja retido acima do montante retido na fonte.
Da mesma forma, existe a possibilidade de que um empregado possa pagar em excesso os impostos da Previdência se, combinados, os salários de vários empregos excederem a base salarial da Previdência Social. Nesse caso, o empregado receberá o imposto de Seguro Social pago em excesso como um reembolso adicional ao preencher uma declaração de imposto.
Relatório Salário e Salário.
Existem três mecanismos de relato de rendimentos salariais e salariais. Primeiro, os empregadores relatam seu pagamento e várias deduções de impostos e outras deduções na folha de pagamento em um holerite, que é emitido para o empregado ao mesmo tempo em que os salários são pagos. Em segundo lugar, após o término do ano, o empregador reportará o montante total da renda salarial e retenção de imposto no Formulário W-2. Uma cópia do W-2 também é enviada para a Administração da Previdência Social e para o IRS. Em terceiro lugar, um funcionário relatará sua renda salarial de todos os empregos em suas declarações anuais de impostos federais e estaduais.

Taxas de imposto & # 8211; O Recurso Fiscal de 2017.
Minha Estimativa de Imposto de Renda de Imposto de Renda.
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Edição gratuita para retornos simples, com renda abaixo de US $ 50 mil.
Edição mais popular, permite todas as principais deduções e créditos.
Para contribuintes com ações, fundos mútuos, propriedades de aluguel, etc.
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Bem-vindo à nova Calculadora do Imposto de Renda com Taxas de Imposto!
Temos orgulho em fornecer uma das mais completas calculadoras de impostos on-line gratuitas para nossos usuários. Você pode usar essa calculadora de impostos para:
Estime seus impostos de renda federais e estaduais calcule seu reembolso esperado ou a quantidade de imposto devido Verifique sua elegibilidade para uma variedade de créditos fiscais comparar sua carga fiscal em diferentes estados.
Depois de preencher a calculadora uma vez, sinta-se à vontade para fazer alterações em sua receita, estado, status de arquivamento ou créditos fiscais para ver como valores diferentes afetam sua conta de imposto de renda total.
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A Calculadora do Imposto de Taxas e Impostos agora está totalmente atualizada para o ano fiscal de 2014! Os cálculos federais agora usarão as subvenções e deduções fiscais oficiais de 2014 e os cálculos estatais usarão os colchetes mais recentes disponíveis.
Houve várias mudanças importantes na legislação tributária a partir do ano fiscal de 2013, incluindo várias que são o resultado de novos impostos relacionados ao Obamacare. Apoiamos as seguintes novas leis tributárias:
Imposto sobre o rendimento líquido do investimento - um novo adicional de 3.8% sobre ganhos de capital acima de certo limite de rendimento ($ 250.000 para MFJ) Imposto Adicional de Medicare - Uma nova sobretaxa de Medicare de 0,9% sobre o rendimento salarial acima de um determinado limite de rendimento ($ 250.000 para MFJ) Imposto sobre Ganhos - Uma nova taxa de imposto sobre ganhos de capital para renda de ganhos de capital sobre a maior faixa de imposto (US $ 450.000 para MFJ)
Nós também adicionamos suporte total para calcular os impostos sobre folha de pagamento (previdência social e imposto de Medicare), bem como impostos de auto-emprego. Os impostos sobre a folha de pagamento são calculados com base na sua renda declarada, e os impostos sobre trabalho autônomo são calculados com base em sua renda comercial declarada.
Seu status de arquivamento determina qual conjunto de parênteses de imposto é usado para determinar seu imposto de renda, bem como sua elegibilidade para uma variedade de deduções e créditos fiscais.
Solteiro - Você é solteira e não tem nenhum dependente. Casado - Se você é casado, e está registrando um retorno conjunto para você e seu cônjuge. Casado separadamente - Você é casado, e seu cônjuge arquiva uma declaração separada. Normalmente resulta em impostos mais altos para ambos os parceiros. Chefe de família - Você é solteiro, mas apóia pelo menos um dependente qualificado. Fornece taxas de imposto melhores e arquivamento como Único.
Imposto sobre os salários.
O imposto sobre a folha de pagamento, também conhecido como imposto FICA, refere-se aos dois impostos obrigatórios pagos por todos os funcionários que contribuem para os programas da Previdência Social e do Medicare.
Os impostos sobre a folha de pagamento são sempre deduzidos diretamente de cada contracheque, de modo que você raramente tem que pagar imposto sobre a folha de pagamento adicional em sua declaração de imposto de renda. Como resultado, muitos contribuintes desconhecem o valor real que pagam nos impostos sobre a folha de pagamento.
Imposto de auto emprego.
O imposto sobre a folha de pagamento consiste em duas metades - metade é paga pelo empregado e metade é paga pelo empregador. Indivíduos que trabalham por conta própria devem pagar as metades do empregado e do empregador do imposto sobre a folha de pagamento, que é comumente conhecido como o imposto de auto-emprego. Como a maioria das pessoas que trabalham por conta própria não recebem cheques de pagamento, muitas vezes são obrigadas a pagar o imposto sobre trabalho autônomo em 15 de abril, juntamente com o imposto de renda regular.
Marque a caixa apropriada, se você gostaria de nos estimar sua folha de pagamento ou impostos de auto-emprego. Nós calcularemos os impostos sobre a folha de pagamento com base na sua renda salarial e nos impostos sobre trabalho autônomo com base na renda do seu negócio.
Algumas deduções são retiradas do seu Rendimento Total para calcular o seu AGI. Essas deduções incluem despesas qualificadas com educadores, pensão alimentícia, despesas de mudança e certas despesas com trabalhadores autônomos.
Não adicione a parte dedutível do seu imposto sobre trabalho independente - nós calcularemos isso para você.
Ganhos de capital de longo prazo são ganhos de capital realizados a partir da venda ou transferência de um ativo de capital que foi mantido por pelo menos um ano e um dia.
Exemplos comuns incluem ganhos da venda de ações, fundos mútuos e imóveis. Os ganhos de capital a longo prazo são tributados a uma taxa muito mais baixa do que o rendimento normal e os ganhos de capital a curto prazo.
Ganhos de capital de curto prazo são ganhos de capital realizados a partir da venda ou transferência de um ativo de capital que foi mantido por um ano ou menos.
Exemplos comuns incluem ganhos de ações curtas e operações de segurança ou lançando imóveis. Ao contrário dos ganhos de capital de longo prazo, os ganhos de capital de curto prazo são tributados à sua taxa de imposto marginal regular.
Juros e dividendos, frequentemente recebidos através de investimentos como contas do mercado monetário e fundos mútuos, também são geralmente tributados à sua taxa de imposto marginal regular.
A receita líquida de negócios é o ganho ou a perda total que você obteve da operação de uma empresa individual não incorporada ou empresa LLC. No seu 1040, a receita e a perda do seu negócio são calculadas no Anexo C.
Você pode calcular sua receita líquida de negócios subtraindo suas despesas comerciais qualificadas (incluindo materiais, ferramentas e custos de mão-de-obra) de seus ganhos brutos.
Se você tem um ganho líquido do seu negócio, ele conta como receita ordinária. Um negócio que gera uma perda líquida pode servir como uma dedução (basta digitar um número negativo).
Isenções pessoais são subsídios que podem ser deduzidos da sua AGI para cada indivíduo que é financeiramente dependente de sua renda. O valor da isenção pessoal é ajustado anualmente pela inflação.
Você sempre pode reivindicar uma isenção pessoal para si mesmo (desde que não seja reivindicado como dependente da declaração de imposto de outra pessoa). Além disso, você pode reivindicar uma isenção para o seu cônjuge se for apresentado em conjunto, bem como uma isenção para cada dependente qualificado (como filhos ou parentes dependentes financeiramente).
Dedução Padrão.
A dedução padrão é uma quantia de dedução fixa definida pelo Congresso para simplificar as deduções para os contribuintes que não têm deduções suficientes para discriminar. A dedução padrão varia de acordo com o status, a idade e a visão e é ajustada a cada ano pela inflação. Você não precisa manter registros de suas deduções se reivindicar a dedução padrão.
Dedução detalhada.
Você pode optar por relacionar suas deduções se suas deduções de qualificação somam mais do que sua dedução padrão. Você só pode discriminar deduções especificamente permitidas pelo IRS - como deduções de caridade, certas despesas médicas, juros de hipotecas e impostos estaduais / locais. A maioria das deduções detalhadas tem limitações e interrupções associadas a elas, e você deve reter registros e recibos de todas as deduções que você especificar.
Devo itemize?
Em geral, os contribuintes de elevado património, os contribuintes que possuem uma casa e os contribuintes com despesas médicas elevadas têm maior probabilidade de beneficiar de deduções detalhadas. Cerca de um terço de todos os contribuintes reivindicam uma dedução detalhada, com as deduções mais comuns, incluindo juros hipotecários e impostos estaduais e locais.
Crédito de imposto de renda ganho.
O Crédito ao Imposto sobre a Renda Ganho (ou EITC) é um crédito fiscal reembolsável para famílias trabalhadoras de renda mais baixa ou média, que é amplamente baseado no número de crianças qualificadas em sua casa. "Crianças qualificadas" para o EITC devem ser dependentes com menos de 19 anos, estudantes dependentes de tempo integral com menos de 24 anos ou crianças com deficiência total de qualquer idade.
Você deve ter entre 25 e 65 anos de idade, ser cidadão, residente nos Estados Unidos e ter menos de US $ 3.200 em receita de investimento para se qualificar para o EITC. Vamos calcular qual EITC, se houver, você pode se qualificar com base na sua renda e no número de crianças qualificadas especificadas.
Crédito de imposto da criança.
O Crédito Fiscal para Crianças é um crédito fiscal de $ 1.000 disponível para cada criança qualificada que você declara como dependente. Uma criança qualificada deve ser dependente, com menos de 17 anos e morar com você em pelo menos metade do ano. Esse crédito é eliminado gradualmente para contribuintes de renda mais alta (a partir de US $ 110.000 para casais e US $ 75.000 para pedidos individuais e outros).
Dois créditos educacionais estão disponíveis, embora você só possa reivindicar um crédito por ano para cada aluno qualificado (incluindo você). O crédito da American Opportunity é a opção preferida para estudantes matriculados em faculdades de quatro anos.
Para calcular os créditos, inclua apenas a quantia de despesas educacionais qualificadas que você gostaria de reivindicar nos campos para os créditos fiscais American Opportunity e / ou Lifetime Learning.
Crédito Fiscal Americano de Oportunidade.
O Crédito Fiscal de Oportunidade Americano vale até US $ 2.500. Você pode reivindicar o crédito American Opportunity para si ou para um estudante dependente com despesas educacionais qualificadas incorridas na obtenção de um diploma em uma escola de graduação qualificada. Você só pode reivindicar o crédito American Opportunity por um total de quatro anos para cada aluno qualificado.
Crédito Fiscal para Aprendizagem ao Longo da Vida.
O Crédito Fiscal para Aprendizagem ao Longo da Vida pode valer até US $ 2.000,00 e pode ser solicitado para qualquer despesa educacional qualificativa sem limite quanto ao número de anos que pode ser solicitado. As despesas qualificáveis ​​para o crédito da Lifetime Learning incluem aulas de pós-graduação, aulas de educação continuada e adulta. Você não tem que estar buscando um grau para usar suas despesas educacionais para este crédito.
Esta calculadora de impostos gratuita é suportada pelo Google Consumer Surveys. Responda a uma pergunta simples ou complete uma atividade alternativa para descartar a caixa de pesquisa e enviar os resultados da calculadora de impostos.
Você só precisa responder a pesquisa uma vez para desbloquear a calculadora de impostos por 24 horas. Pode ser necessário rolar a tela para baixo para ver a pergunta completa da pesquisa e dispensar a caixa.
Termos de Uso e Isenção de Responsabilidade.
A TAX-TAXA DE IMPOSTO DE IMPOSTO DE RENDA é uma ferramenta gratuita fornecida em uma base AS-IS, sem garantia implícita de aptidão ou garantia de utilidade. Embora envidemos todos os esforços para garantir que esta calculadora e nossos dados fiscais estejam corretos e atualizados, não podemos ser responsabilizados pelos resultados dessa calculadora ou pelas consequências de usá-los.
Ressaltamos que esta calculadora é fornecida apenas para fins informativos. Nenhuma calculadora pode substituir o aconselhamento profissional e recomendamos que você consulte um planejador financeiro licenciado ou CPA antes de tomar quaisquer decisões financeiras ou relacionadas a impostos.

Opções de ações de imposto de renda do estado da Pensilvânia
A pena de casamento e o bônus de casamento são formas de o código do imposto de renda violar o princípio da neutralidade e afetar o comportamento do contribuinte. Veja como cada um funciona e por que eles merecem atenção. Consulte Mais informação.
Taxas de imposto sobre vendas estaduais e locais 2018.
Além dos impostos sobre vendas em nível estadual, os consumidores também enfrentam impostos locais sobre vendas em 38 estados. Essas taxas podem ser substanciais, de modo que um estado com uma taxa moderada de impostos sobre vendas em todo o estado poderia, na verdade, ter uma taxa estadual e local combinada muito alta. Consulte Mais informação.
Apresentamos a Calculadora de Reforma Fiscal 2018 da Tax Foundation.
Taxas de Imposto de Renda das Empresas do Estado e Brackets para 2018.
A Reforma Tributária é transferida para os Estados: Implicações das Receitas do Estado e Reformas de Oportunidades após a Reforma Tributária Federal.
Detalhes preliminares e análise do Decreto de Imposto e Emprego.
Impostos federais.
O Centro de Políticas Fiscais Federais da Fundação Tributária produz dados, pesquisas e análises pontuais e de alta qualidade sobre questões tributárias federais que influenciam o debate sobre políticas baseadas em princípios econômicos.
Impostos Estaduais.
O Centro de Política Fiscal Estadual da Fundação Tributária produz e comercializa dados, pesquisas e análises oportunos e de alta qualidade sobre questões fiscais estaduais que influenciam o debate em direção a políticas fiscais baseadas em princípios econômicos.
Fornecer aos jornalistas, contribuintes e formuladores de políticas dados básicos sobre impostos e gastos é uma pedra angular da missão educacional da Fundação Tributária.
Descobrimos que uma das maneiras mais interessantes de visualizar os dados fiscais é na forma de mapas. Toda semana, lançamos um novo mapa fiscal que ilustra uma medida importante das taxas, cobranças, encargos e muito mais.
Você acredita em melhorar as vidas através da política fiscal?
Ajude-nos a educar os contribuintes, legisladores e a mídia sobre a importância de uma política tributária inteligente e favorável ao crescimento. Apoie nossa análise aprofundada e junte-se a nós na elaboração de políticas fiscais que melhorarão a vida das gerações vindouras.
Junte-se a mais de 22.000 assinantes.
Fique por dentro das notícias e análises fiscais que são importantes para você.
Quais são os impostos como em seu estado?
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Nas noticias.
30 de setembro de 2017.
26 de setembro de 2017.
25 de setembro de 2017.
Nossa visão é um mundo em que o código fiscal não atrapalha o sucesso.
Os impostos fazem parte da vida, mas não precisam ser onerosos e complexos, nem inibir o crescimento econômico. Um código fiscal ideal é aquele que segue os princípios da política tributária sólida: simplicidade, neutralidade, transparência e estabilidade.
Artigos recentes.
A carga tributária poderia custar aos EUA até 1,2% de seu PIB.
Bancos Urge Congresso a Rever Isenção de União de Crédito.
Bilhões de novas receitas para a Geórgia levam à discussão sobre a reforma tributária.
Testemunho: Idaho deve considerar o desacoplamento da dedução de passagem.
Proposta de Troca Tributária Pró-Crescimento do Mississippi.
Governador de Iowa esboça plano para cortar taxas e revogar a dedutibilidade federal.
Penalidades e bônus de casamento de acordo com a Lei de Cortes de impostos e Empregos.
Reduzir os benefícios da previdência social sob o plano do governador Cuomo.
Taxas de imposto sobre vendas estaduais e locais 2018.
Os veículos elétricos terão um impacto de longo prazo no imposto sobre o gás.
Ajude-nos a alcançar nossa visão de um mundo em que o código tributário não atrapalhe o sucesso.
A Tax Foundation é a principal organização independente de pesquisa de política tributária do país. Desde 1937, nossa pesquisa de princípios, análise perspicaz e especialistas engajados informaram uma política fiscal mais inteligente nos níveis federal, estadual e local. Melhoramos a vida por meio de pesquisa e educação sobre políticas tributárias que levam a um maior crescimento econômico e oportunidades.

2018 State Business Tax Climate Index.
Sumário executivo.
O Índice de Clima Tributário Empresarial da Fundação Tributária permite que líderes empresariais, formuladores de políticas governamentais e contribuintes avaliem como os sistemas tributários dos estados se comparam. Embora haja muitas maneiras de mostrar o quanto é coletado em impostos pelos governos estaduais, o Índice foi elaborado para mostrar como os estados estruturam seus sistemas tributários e fornece um roteiro para melhorias.
Os 10 melhores estados do índice deste ano são:
Wyoming South Dakota Alaska Florida Nevada Montana New Hampshire Utá Indiana Oregon.
A ausência de um imposto importante é um fator comum entre muitos dos dez principais estados. Impostos de propriedade e impostos de seguro-desemprego são cobrados em todos os estados, mas há vários estados que dispensam um ou mais dos principais impostos: o imposto de renda corporativo, o imposto de renda individual ou o imposto sobre vendas. Wyoming, Nevada e Dakota do Sul não possuem imposto de renda corporativo ou individual (embora Nevada imponha impostos brutos sobre as receitas); O Alasca não possui renda individual ou imposto sobre vendas em nível estadual; A Flórida não possui imposto de renda individual; e New Hampshire, Montana e Oregon não têm impostos sobre vendas.
Os 10 estados mais baixos ou piores do Índice deste ano são:
Rhode - ilha Louisiana Maryland Connecticut Ohio Minnesota Vermont Califórnia New York New-jersey.
Isso não significa, no entanto, que um estado não possa se classificar entre os dez primeiros e, ao mesmo tempo, cobrar todos os principais impostos. Indiana e Utah, por exemplo, cobram todos os principais tipos de impostos, mas o fazem com taxas baixas em bases amplas.
Os estados nos 10 últimos tendem a ter um número de aflições em comum: impostos complexos, não-neutros, com taxas comparativamente altas. Nova Jersey, por exemplo, é prejudicada por alguns dos mais altos encargos tributários do país, é um dos dois únicos Estados a cobrar imposto sobre herança e imposto sobre imóveis, e mantém alguns dos impostos sobre renda individuais mais estruturados no país. país.
Alterações notáveis ​​no ranking no índice deste ano.
Arizona concluiu um phasedown multianual de sua taxa de imposto de renda corporativo, elevando a taxa de 5,5 para 4,9 por cento em 2017. Reduções de taxa anual programadas começaram em 2015, e a redução final deste ano ajudou o estado a melhorar seis posições no componente de imposto de renda 19 a 13. Os cortes foram auxiliados por limitações em créditos e outras preferências fiscais, que ajudaram a reduzir as reduções de tarifas.
Califórnia.
Em 2012, os eleitores da Califórnia ratificaram a Proposição 30, uma emenda constitucional iniciada que, entre outras mudanças, elevou temporariamente a alíquota de 7,25 para 7,5 por cento e criou quatro novas alíquotas de imposto de renda com uma taxa marginal superior de 13,3 por cento. Em 2016, os eleitores aprovaram uma prorrogação de 12 anos das provisões do imposto de renda, mas a medida do voto (Proposição 55) permitiu que o aumento do imposto sobre vendas expirasse, com a taxa do estado revertendo para 7,25%. A Califórnia também adotou um aumento considerável em seu imposto sobre cigarros, elevando o imposto por pacote de US $ 0,87 para US $ 2,87 e, juntamente com os aumentos de impostos sobre vendas locais, derrubando o estado em um lugar no componente de imposto sobre vendas do Índice.
O legislativo de Illinois cancelou o veto do governador para adotar um orçamento que aumentou o imposto de renda individual de taxa única de 3,75 para 4,95 por cento, e a taxa de imposto de renda de 7,75 para 9,5 por cento. As entidades de repasse também pagam um imposto de renda individual suplementar de 1,5% (na mesma base), conhecido como imposto de substituição de propriedade pessoal (PPRT), elevando a alíquota de imposto de renda individual para negócios de repasse a 6,45%. Um PPRT similar de 2,5% está incluído na taxa de imposto de renda corporativo de 9,5% do estado. Estes aumentos de taxa fizeram com que o estado escorregasse levemente no ranking, para o 29º lugar no geral.
Recorrentes déficits de receita precipitados por um pacote míope de cortes de impostos adotados em 2012 que, entre outras coisas, isentaram todas as receitas de impostos, levaram os legisladores a adicionar um suporte adicional ao imposto de renda do Kansas e elevaram a taxa máxima de 4,6 para 5,2 por cento em um override do veto do governador. O suporte adicional e a taxa mais alta, junto com melhorias em estados com classificação semelhante, reduziram o estado para três posições no Índice. No entanto, as taxas permanecem menores do que eram antes dos cortes de 2012, e a eliminação deste ano de uma isenção para a renda de repasse melhora a neutralidade do código de imposto de renda do estado.
Novo México.
O Novo México continua a reduzir as taxas de imposto de renda corporativo, com a taxa programada para cair para 5,9% até 2018. A redução deste ano, de 6,6% para 6,2%, melhorou o estado de 25º para 24º no componente tributário corporativo do Índice. e a redução no próximo ano continuará a melhorar a posição do estado em comparação com seus vizinhos e a melhorar ainda mais a sua pontuação no componente tributário corporativo.
Carolina do Norte.
Após a melhora mais dramática na história do Índice em 2015 - do 41º ao 12º em um ano - a Carolina do Norte continuou a melhorar sua estrutura tributária e agora impõe o imposto sobre a renda das empresas mais baixas no país em 3% de 4% no ano anterior. Este corte de taxa melhora o estado de 4 a 3 no componente de imposto de renda corporativo, a melhor classificação para qualquer estado que impõe um imposto corporativo. (Seis estados renunciam ao imposto de renda corporativo, mas quatro deles impõem impostos de receitas brutas economicamente distorcivos em seu lugar.) Uma redução individual do imposto de renda, de 5,75 para 5,499%, melhorou a classificação do imposto de renda do estado do 15º para o 13º. No 11º lugar geral, a Carolina do Norte apenas se encontra em Utah e Indiana, entre os estados que não abdicam de nenhum dos principais tipos de impostos.
Rhode Island.
Reduções substanciais nas taxas mínimas em todas as tabelas de impostos de seguro-desemprego resultaram em uma melhoria dramática na classificação de Rhode Island no componente de seguro-desemprego do Índice, de 50 a 23, e melhoraram a classificação geral de 44ª para 41ª.
Distrito da Colombia.
Em 2014, o Distrito de Colúmbia começou a implantar um pacote de reforma tributária que reduziu os impostos de renda individuais para as faixas de renda média, expandiu a base tributária de vendas, elevou a isenção do imposto imobiliário e reduziu a alíquota do imposto de renda corporativo. Neste ano, a taxa corporativa sofreu uma nova redução, de 9,2 para 9,0%, o que melhorou o Distrito de 28 para 26 no componente de impostos corporativos do Índice.
Mudanças recentes e propostas não refletidas no Índice Climático de Impostos Empresariais do Estado de 2018.
Arkansas revogou seu crédito de imposto de investimento da InvestArk, aumentando a neutralidade de seu imposto de renda corporativo. No entanto, como o estado ainda reteve vários créditos menores de impostos sobre investimentos, a revogação da InvestArk por si só não melhora a classificação do Arkansas no Índice. O estado também removeu as peças de reparo (uma entrada de negócios) da base tributária de vendas, reduzindo a pirâmide fiscal.
O Havaí votou para restaurar as taxas mais altas e os colchetes associados a um aumento temporário de impostos que havia expirado um ano atrás, restabelecendo três faixas individuais de imposto de renda que haviam sido eliminadas e restaurando a taxa marginal máxima para 11%, acima dos 8,25%. No entanto, esta reversão não entrará em vigor até o próximo ano civil e, portanto, será refletida no Índice de 2019.
Indiana viu reduções de taxa consistentes através de uma série de esforços de reforma tributária responsável entre 2011 e 2016. Legislação subsequente estabeleceu um novo cronograma de redução de imposto de renda corporativo até o ano fiscal de 2022. Para 2018, a taxa de imposto de renda diminuiu de 6,25 para 6,0%. Essas mudanças, no entanto, não foram suficientes para melhorar a já invejável classificação de Indiana no Índice, onde o Estado de Hoosier e Utah estão funcionalmente empatados para os melhores rankings entre os estados que impõem todos os principais impostos.
O Maine adotou, e depois revogou, uma sobretaxa de 3 por cento sobre os altos salários em 2017, o que resultaria em uma taxa de imposto de renda individual marginal de 10,15 por cento, superada apenas pela alta taxa marginal de 13,3 por cento da Califórnia. Porque o imposto foi revogado, não é refletido no índice. Se o imposto tivesse permanecido no lugar, o Maine teria caído do 28º para o 35º no geral.
Mississippi.
Em 2016, o Mississippi adotou legislação gradualmente eliminando o imposto sobre o capital social do Estado, aumentando a isenção em 2018 e reduzindo a taxa em um quarto de usina por ano entre 2019 e 2028. Os índices de imposto de renda individual e corporativo de 3 por cento também estão programados para eliminação. . Assim que as reduções começarem, elas serão refletidas no Índice.
Carolina do Norte.
Com base nos esforços de reforma tributária dos anos anteriores, incluindo as reduções de tarifas implementadas este ano, o legislativo da Carolina do Norte adotou mais reduções nas taxas de imposto de renda individuais e corporativas, para entrar em vigor no próximo ano. A taxa de imposto de renda corporativo está programada para ser reduzida para 2,5%, enquanto a taxa de imposto de renda individual de taxa única do estado será fixada em 5,25%. Essas alterações pendentes serão refletidas na próxima edição do Índice.
Nova Jersey.
A multipronged tax package saw New Jersey’s sales tax rate decline from 7.0 to 6.875 percent while the gas tax increased from 14.5 to 37.1 cents per gallon. New Jersey also began to phase out its estate tax; it is currently one of only two states (along with Maryland) to levy both an estate and an inheritance tax. If New Jersey completes the repeal of its estate tax next year as anticipated, its rank can be expected to improve on the property tax component of the Index , where it currently ranks 50th.
Three years ago, New York policymakers enacted a substantial corporate tax reform package that continues to phase in. This year, they reduced the capital stock tax rate from 0.125 to 0.1 percent, which was not enough, on its own, to yield a change in rank in the Index . The capital stock tax is on a path to repeal, which can be expected to produce improvements on the property tax component in future editions of the Index .
In 2016, Tennessee began phasing out its Hall income tax, a tax on interest and dividend income, though the state does not tax wage income. The Index includes this tax at a calculated rate to reflect its unusually narrow base. Initial reductions are too small to change any component rankings, but Tennessee’s rank will improve once the tax is fully phased out in 2022.
Introdução.
Taxation is inevitable, but the specifics of a state’s tax structure matter greatly. The measure of total taxes paid is relevant, but other elements of a state tax system can also enhance or harm the competitiveness of a state’s business environment. The State Business Tax Climate Index distills many complex considerations to an easy-to-understand ranking.
The modern market is characterized by mobile capital and labor, with all types of businesses, small and large, tending to locate where they have the greatest competitive advantage. The evidence shows that states with the best tax systems will be the most competitive at attracting new businesses and most effective at generating economic and employment growth. It is true that taxes are but one factor in business decision-making. Other concerns also matter—such as access to raw materials or infrastructure or a skilled labor pool—but a simple, sensible tax system can positively impact business operations with regard to these resources. Furthermore, unlike changes to a state’s health-care, transportation, or education systems, which can take decades to implement, changes to the tax code can quickly improve a state’s business climate.
It is important to remember that even in our global economy, states’ stiffest competition often comes from other states. The Department of Labor reports that most mass job relocations are from one U. S. state to another rather than to a foreign location. [1] Certainly, job creation is rapid overseas, as previously underdeveloped nations enter the world economy without facing the third highest corporate tax rate in the world, as U. S. businesses do. [2] State lawmakers are right to be concerned about how their states rank in the global competition for jobs and capital, but they need to be more concerned with companies moving from Detroit, Michigan, to Dayton, Ohio, than from Detroit to New Delhi. This means that state lawmakers must be aware of how their states’ business climates match up against their immediate neighbors and to other regional competitor states.
Anecdotes about the impact of state tax systems on business investment are plentiful. In Illinois early last decade, hundreds of millions of dollars of capital investments were delayed when then-Governor Rod Blagojevich proposed a hefty gross receipts tax. [3] Only when the legislature resoundingly defeated the bill did the investment resume. In 2005, California-based Intel decided to build a multibillion-dollar chip-making facility in Arizona due to its favorable corporate income tax system. [4] In 2010, Northrup Grumman chose to move its headquarters to Virginia over Maryland, citing the better business tax climate. [5] In 2015, General Electric and Aetna threatened to decamp from Connecticut if the governor signed a budget that would increase corporate tax burdens, and General Electric actually did so. [6] Anecdotes such as these reinforce what we know from economic theory: taxes matter to businesses, and those places with the most competitive tax systems will reap the benefits of business-friendly tax climates.
Tax competition is an unpleasant reality for state revenue and budget officials, but it is an effective restraint on state and local taxes. When a state imposes higher taxes than a neighboring state, businesses will cross the border to some extent. Therefore, states with more competitive tax systems score well in the Index , because they are best suited to generate economic growth.
State lawmakers are mindful of their states’ business tax climates, but they are sometimes tempted to lure business with lucrative tax incentives and subsidies instead of broad-based tax reform. This can be a dangerous proposition, as the example of Dell Computers and North Carolina illustrates. North Carolina agreed to $240 million worth of incentives to lure Dell to the state. Many of the incentives came in the form of tax credits from the state and local governments. Unfortunately, Dell announced in 2009 that it would be closing the plant after only four years of operations. [7] A 2007 USA TODAY article chronicled similar problems other states have had with companies that receive generous tax incentives. [8]
Lawmakers make these deals under the banner of job creation and economic development, but the truth is that if a state needs to offer such packages, it is most likely covering for an undesirable business tax climate. A far more effective approach is the systematic improvement of the state’s business tax climate for the long term to improve the state’s competitiveness. When assessing which changes to make, lawmakers need to remember two rules:
Taxes matter to business. Business taxes affect business decisions, job creation and retention, plant location, competitiveness, the transparency of the tax system, and the long-term health of a state’s economy. Most importantly, taxes diminish profits. If taxes take a larger portion of profits, that cost is passed along to either consumers (through higher prices), employees (through lower wages or fewer jobs), or shareholders (through lower dividends or share value), or some combination of the above. Thus, a state with lower tax costs will be more attractive to business investment and more likely to experience economic growth. States do not enact tax changes (increases or cuts) in a vacuum. Every tax law will in some way change a state’s competitive position relative to its immediate neighbors, its region, and even globally. Ultimately, it will affect the state’s national standing as a place to live and to do business. Entrepreneurial states can take advantage of the tax increases of their neighbors to lure businesses out of high-tax states.
To some extent, tax-induced economic distortions are a fact of life, but policymakers should strive to maximize the occasions when businesses and individuals are guided by business principles and minimize those cases where economic decisions are influenced, micromanaged, or even dictated by a tax system. The more riddled a tax system is with politically motivated preferences, the less likely it is that business decisions will be made in response to market forces. The Index rewards those states that minimize tax-induced economic distortions.
Ranking the competitiveness of fifty very different tax systems presents many challenges, especially when a state dispenses with a major tax entirely. Should Indiana’s tax system, which includes three relatively neutral taxes on sales, individual income, and corporate income, be considered more or less competitive than Alaska’s tax system, which includes a particularly burdensome corporate income tax but no statewide tax on individual income or sales?
The Index deals with such questions by comparing the states on more than one hundred variables in the five major areas of taxation (corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and property taxes) and then adding the results to yield a final, overall ranking. This approach rewards states on particularly strong aspects of their tax systems (or penalizes them on particularly weak aspects), while also measuring the general competitiveness of their overall tax systems. The result is a score that can be compared to other states’ scores. Ultimately, both Alaska and Indiana score well.
[1] See, e. g., U. S. Department of Labor, “Extended Mass Layoffs, First Quarter 2013 ,” Table 10, May 13, 2013.
[2] Kyle Pomerleau, “Corporate Income Tax Rates Around the World, 2014,” Tax Foundation Fiscal Fact No. 436, Aug. 20, 2014.
[3] Editorial, “Scale it back, Governor,” Chicago Tribune , , Mar. 23, 2007.
[4] Ryan Randazzo, Edythe Jenson, and Mary Jo Pitzl, “Chandler getting new $5 billion Intel facility,” AZCentral, Mar. 6, 2013.
[5] Dana Hedgpeth & Rosalind Helderman, “Northrop Grumman decides to move headquarters to Northern Virginia,” The Washington Post , Apr. 27, 2010.
[6] Susan Haigh, “Connecticut House Speaker: Tax ‘mistakes’ made in budget,” Associated Press, Nov. 5, 2015.
[7] Austin Mondine, “Dell cuts North Carolina plant despite $280m sweetener,” TheRegister. co. uk, Oct. 8, 2009.
[8] Dennis Cauchon, “Business Incentives Lose Luster for States,” USA TODAY , Aug. 22, 2007.
Previous Versions of State Business Tax Climate Index.
2017 State Business Tax Climate Index.
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Overall Tax Burden By State.
One of the biggest tax bills most people pay is the federal income tax calculated on IRS form 1040 each April. Three other major taxes come from your state or locality: state income taxes, sales taxes and property taxes. The way each type of tax is calculated is complicated; factors such as your income level, marital status and county of residence affect your tax rates.
Simple, apples-to-apples comparisons of how much total tax you’ll pay living in one state versus another are impossible. And since you pay state income tax on the money you earn, sales tax on the money you spend and property tax on the value of any real estate you might own, you can’t simply add up the average rates in each state and rank them from lowest to highest.
However, if you’re trying to choose where to live or where to locate your business – and taxes are a factor in your decision – the tables we’ve created can give you a big picture to use as the starting point for more research on how taxes in each state would affect your unique situation.
Income Tax: On the Money You Earn.
State income tax rates are only simple in the few states that either charge no income tax or charge a flat rate no matter what you earn. In other states, the income tax rate you’ll pay depends on what income bracket you fall into, and each state sets its own brackets at different income levels. In some states, most taxpayers in the lower and middle classes pay the top rate; in others, you have to earn more than $1 million to pay the highest rate.
The charts below simply list the income tax rate you’d pay in each state if you had the median income in 2012 as calculated by the U. S. Census Bureau. Your state tax bill will also depend on any exemptions, deductions and credits you qualify for – and states differ on what tax breaks they offer and who qualifies.
Here are the 10 best ( boldface ) and 10 worst ( italics ) states, along with the 30 states that fall in the middle, for paying state income taxes, whether you file as single or married.
2014 Income Tax Rate – Singles ($26,989 median income)
2014 Income Tax Rate – Families ($62,241 median income)
Data source: Tax-Rates, “Income Tax Rates by State,” individual pages showing tax brackets for each state linked from tax-rates/taxtables/income-tax-by-state.
Sales Tax: On the Money You Spend.
Determining which states have the worst sales tax burden is a little tricky, because the actual sales tax rate you’ll pay depends on what city you live in. Still, cities build their sales tax rates on top of state sales tax rates, so it’s useful to know the base rate you’ll pay to make purchases anywhere in the state.
The chart below ranks the states from lowest to highest in terms of their sales tax burdens, with the 10 best in boldface , the 10 worst in italics , and the 30 middle states in regular type. It also shows what sales tax rate you’ll pay in each state’s most populous city and how much higher that rate is than the state sales tax rate.
State’s Most Populous City, from 2010 U. S. Census.
2014 State + Local Sales Tax % in Most Populous City.
Percentage-Point Difference betw. State and Local Sales Tax Rate.
Data sources: Retirement Living Information Center, “Taxes by State,” retirementliving/taxes-by-state; US Census Bureau, United States Census 2010 Population Totals, press releases for each state, various months, 2011, census. gov/newsroom/releases/archives/2010_census/; Sale-Tax, “State Sales Tax Rates,” sale-tax/.
Property Tax: On the Real Estate You Own.
If you plan to own a home, you’ll want to know what the property tax rate is in the places you’re considering living. But property taxes are established at the local level, not the state level. In some areas, you can cross the street into a different town and pay a dramatically different rate despite living in the same general area with similar amenities and quality of life.
Property taxes are influenced by factors such as homeowners' exemptions, how often property values are reassessed and annual caps on property tax increases, such as California’s 2% annual cap under Proposition 13. Also, in some jurisdictions, homeowners' exemptions are only available to taxpayers who fall below an income threshold and/or who qualify as senior citizens; others give these exemptions to any owner who occupies the property as his or her primary residence.
Again, the 10 states with the lowest average property taxes are in boldface ; the 10 with the highest are in italics .
Average Property Tax Rate on State Median Home Value, 2014.
Data source: Tax-Rates, “Property Taxes by State,” individual pages showing average percentage of home value for each state linked from tax-rates/taxtables/property-tax-by-state .
These charts don’t account for the significant percentage of taxes that many people pay to states other than their state of residence. We pay these taxes when we travel or when we earn income in another state. Another factor to consider is that while you might pay higher taxes in one state compared with another, you might also be able to earn more in the higher-taxed state. The question is whether you’ll earn enough extra to make up for, or exceed, the cost of the higher tax burden.
Also, while you might initially be drawn to a state that has no income tax or no sales tax, it’s important to look at the big picture: States often compensate for lower taxes in one area with higher taxes in another. Government-provided services have to be funded somehow.
Are Low Tax Rates Always a Good Thing?
You might assume that while higher taxes are a pain, they mean you’re getting more and better public services for your dollars – smoother roads, higher-ranking public schools and more beautiful parks. But just because government officials have lots of tax dollars at their disposal doesn’t mean they’re spending them wisely. Similarly, low tax rates don’t necessarily mean that public services are lacking. Politicians might be spending tax dollars carefully in those jurisdictions, and they might have turned over to the private sector certain services that the government normally provides.
As with any other purchase, you have to do more research to see what you’re actually getting for your money because a higher price (or in this case, a higher tax bill) doesn’t always mean better quality, and a lower price doesn’t always mean inferior quality.
Many states impose similar tax burdens on their residents; if you’re considering living in these states, taxes are unlikely to be a deciding factor. But at the high and low ends, there are large differences in tax burdens that could have a real impact on your ability to make ends meet in the short run and to save for the long run.
While tax rates may not be your first or even fifth consideration, sometimes they’re the tiebreaker in a close decision. For more details on how to interpret these numbers and use them to make decisions, see States With The Biggest (And Smallest) Tax Burden .

Solar Power Rocks.
Clear info on home solar power rebates, tax credits, and other benefits.
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Parabéns! You've found the ultimate guide to going solar in Pennsylvania.
2018 Policy Grade.
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At Solar Power Rocks, our dream is to turn your thoughts of solar power for your home into reality.
A few years ago the $100 million boost to the Pennsylvania Sunshine program had solar power here buzzing. Unfortunately, with funding exhausted for the statewide solar power rebate program, other gaps in policy have drawn Pennsylvania back to the middle of the solar-friendly pack.
There’s still a solid foundation to build around, and with a couple of easy tweaks lawmakers could again make Pennsylvania an example for solar policy. Needless to say, with so much to protect here – from the beautiful Presque Isle to the vast Alleghenys – Pennsylvania has countless reasons to support strong solar-promoting policy.
Questões? Our network of solar experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page. You can get discounted on-grid pricing as low as $4,000/kW! This is paired with the Pennsylvania solar incentives you see below.
Your guide to going solar in Pennsylvania.
We've designed this page to be a complete guide to the complicated and sometimes confusing process of installing solar panels on a home in Pennsylvania. Since there's a lot of important information to consider, we've separated the page into sections to help you find what you are looking for. If you find this page useful, please share it with someone who might also find it interesting!
The Solar Strategy section is all about the various financial options you have in Pennsylvania. We've created a tool that asks you a few questions about what you hope to get out of a solar purchase and recommends whether you should pursue a solar lease, loan, or outright purchase. Then, we give you a detailed picture of how each could work for you.
The Policy Information section contains all of our latest research on the rules set by the state legislature and public utilities commission that determines how easy it is to go solar in Pennsylvania. These policies and rules govern everything from renewable energy mandates to whether you get paid retail or wholesale rates for the extra energy your system produces, and can have a huge effect on the viability of solar.
Finally, the Solar Incentives section lists all of the available financial benefits available to homeowners who go solar. This section includes information about money-back rebates and grants, tax credits, and tax exemptions. If you're looking for what Pennsylvania is doing to make solar more affordable for its citizens, you'll find it here.
We hope you find our work useful. If so, please help us keep our research and advocacy as strong as possible by sharing it with someone who might also find it interesting, contributing any amount you can, and by getting yourself personalized savings estimates from our trusted partner network.
Click any of the boxes below to go to that section of the page, or scroll down to read the page in order.
Your Solar Strategy in Pennsylvania.
Figuring out the best way to go solar in Pennsylvania can be a little daunting. From loans and leases to power-purchase agreements, there are a lot of options out there. To help you pick the one that might be best, we've created the handy decision tool below.
We'll ask you a few simple questions about you and your home. Once you're done, we'll recommend a good option. Further down this page, we provide cost estimates and example return-on-investment calculations for all the various options:
Compare the Return of Different Solar Investments in Pennsylvania.
The chart above shows the 25-year returns for an investment in solar whether you choose to purchase a system with cash or pay over time with a loan or lease. As you can see, the purchase option leads to the highest dollar-amount returns over time, but look a little closer. Taking a solar loan or Home Equity Loan or Line of Credit (HELOC—the orange bars) and paying for the system over time means you'll actually spend less of your own money over time, while reaping a big financial benefit in year 1.
That's because you take a loan for the system, but you still get a 30% federal tax credit based on the entire cost. You'll start out ahead, so your payments over 15 years will have less impact on you than plunking down a big pile of money up front. All you need is equity or great credit.
Lastly, take a look at the blue bars. They represent a solar Power-Purchase Agreement (PPA), which is also called third-party ownership. With a PPA, you put $0 down on a rooftop solar system and buy the electricity it produces for a little bit less than what you've been paying the electric company. You accumulate savings over time, but since you're not spending any money for the installation, you're cashflow positive from day one!
Read more below about each of three very good options for solar in Pennsylvania.
Net Present Value of Solar in Pennsylvania.
“Net Present What?!” Don’t panic, this isn’t an economics test. NPV is just a tool used to compare investments. Basically, it asks, “if you had X dollars to invest, which investment would get you the best return?” It relies on the idea that getting a return on your investment sooner is better than later, because you can reinvest your early profits and keep the gain train going.
We compare an investment in solar to a “what-if” investment in a Standard & Poor’s (S&P) 500 stock index fund, which has seen growth of about 7% per year over the past 25 years. We use the cost of solar in Pennsylvania and ask “how much better or worse (in 2018 dollars) is an investment in solar than stocks?” Here's what we found for the three different ways of going solar in Pennsylvania:
Now there's a telling chart! Solar can be a very good investment in Pennsylvania, or it can be kinda bleh. It all depends on how you pay for it. A solar investment in Pennsylvania should provide a better return than the stock market if you choose a PPA or a loan, but not so much if you pay up front. Here's some more about how we got these numbers:
Saving money without having to put anything down is always going to have a positive NPV. In Pennsylvania, A PPA will save you a little bit each month, adding up to $4,050 over 20 years. That's like having an extra $1,927 to invest today. The thing is, it even comes close to a solar loan, so you can choose a PPA in PA and let the solar company do all the work, while you just soak up the savings. Read more about PPAs in Pennsylvania below.
Solar Loan NPV: $2,309.
As we’re fond of saying, taking a loan for solar is a no-brainer, because it’s like agreeing to pay over time for something that is also making you money. In Pennsylvania, the money you make comes from electricity savings, and a little bit from selling SRECs. Add to that the money you'll get back from excellent state and federal tax credits, and solar in Pennsylvania is a no-brainer.
All that helps push the NPV of a solar loan to $2,309 better than a similar investment in the stock market. That's a great value for any investment, and it's insane for something that requires no money down. Read more about solar loans below.
Solar Purchase NPV: -$1,272.
If you're paying for solar up front, you're gonna need a few thousand dollars to do it. And when all is said and done, the NPV of an outright solar purchase in Pennsylvania doesn't match up. Instead, look at what happens to NPV if you choose a solar loan instead. Unless you need to put cash into an asset, a loan is a much smarter way to pay for solar panels. Read more about solar purchases below.
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Solar Power-Purchase Agreements in Pennsylvania.
A PPA is a great way to go solar if you haven't got stacks of cash or oodles of equity in your home. It's possible to get solar panels for $0-down and see some modest savings over 20 years!
As for leases in Pennsylvania: the electricity costs here are pretty high—above the national average. That means a PPA saves you money starting on day 1! For now, the electricity from a 5-kW solar system will cost you $685 per year under a PPA, but you would have paid $805 to the utilty for the same amount of power. That's $121 that will be staying in your pocket this year.
Now that might not sound like a huge amount of money right now, but as the utility company raises rates, you will start to see greater annual savings. Over 20 years, our estimate shows a total savings of $4,050. The panels will be installed and maintained by professionals, and all you have to do is brag to the Smiths down the street about your green habits!
Here's more about how a solar PPA works:
Example savings in Pennsylvania.
Annual Electric Bill Before Solar.
Annual Electric Bill After Solar.
Husa. Annual Solar Payments.
Average Annual Savings.
Power-Purchase Agreements (PPAs) are the most popular form of what's called "third-party solar." A PPA just means your solar company owns the panels on your roof, and you pay for the electricity they produce. The numbers above show the savings with a solar PPA for an average home in Pennsylvania. The typical electric bill before solar power is super expensive, but with a PPA, your monthly expenses will be lower. You'll be saving money and saving the planet all at the same time!
Here's an estimate of the monthly savings for a solar PPA in Pennsylvania:
With a PPA, your solar company essentially becomes a second utility provider, only the solar electricity is sold to you at a lower rate than the fossil fuel electricity you've been buying from the electric company! Note: your PPA won't eliminate your power bill from your regular electric provider, because you'll still need energy from the grid when the sun isn't shining. But it will save you money!
The less-popular cousin of the third-party solar family is the solar lease. It's basically like renting your panels for a set monthly payment, and getting all the energy they produce—however much it is. Don't get spooked by that language, though. A typical solar lease comes with energy production guarantees that will make sure you're getting what you paid for. In fact, if you're not offered a production guarantee with a solar lease, walk away.
Here's the best part of third-party solar: whether you end up with a lease or a PPA, the installation company owns the panels and will do all the maintenance for you. Usually that means just a good cleaning every year, but if any part of that system fails, you're off the hook! That can be a great benefit to homeowners who are risk averse.
Keep in mind, the numbers above are based on an average home in Pennsylvania. If you're ready for a custom quote for a solar lease or PPA, our network of experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page.
Home Solar Power: PPA vs. Purchasing.
To PPA, or not to PPA? Willsolar Shakespanels would be proud we're discussing this. Here's the basic deal. If you choose to lease your panels, you benefit from no out of pocket costs and an immediately reduced total electricity payment. Because of this, many regard this option as a no-brainer, since there isn't any downside to think of. The only hiccup you'll start to experience is when you consider the long term financial benefit of owning the solar panel system yourself.
In many situations, if you can afford the outlay or can easily secure financing, the cost of the install becomes an investment with a return outpacing even the strongest performing mutual funds. In addition, there's significantly less principal risk, since the energy credits you will be producing are tied to the sun coming up in the morning instead of our financial markets!
Additionally, if you go the PPA route, you must forfeit all the credits and performance payments you would receive by owning the system yourself to the solar PPA company (after all, that's how they can afford to give you such a no-brainer proposition in the first place).
Solar Loans in Pennsylvania.
You don't need $17,000 sitting around to pay for solar. As long as you have equity in your home, you can still own solar panels and reap all the benefits. Heck, even if you do have the cash, getting a loan to pay for solar is by far the best option when it comes to percentage return on investment.
That’s because, in Pennsylvania, using a loan to pay for solar is like investing in a business that's sure to succeed, and also earns you a tax break. That's right: a HUGE tax break!. You'll come out thousands ahead this year, and you'll still see a handsome profit over the 25-year life of your system.
A solar purchase like this will make sense for you if the following is true about you and your current situation:
You can get a home-equity line of credit (HELOC) for $16,875, with a fixed rate of 5% or lower and a 15-year repayment period. Don't be put off if you're offered a higher rate. It just means a tiny bit less of the thousands of dollars you'll make with solar. You love making money without much risk.
Here’s how the numbers pencil out for an Pennsylvania homeowner who makes a solar purchase with a HELOC:
Installing a typical 5-kW solar system should start at about $16,875 after Pennsylvania's High Performance Buildings Program grant. That's how big your loan will need to be to cover it. The electricity you'll save in the first year of operation would have cost $819, but your annual loan payments will be $1,601, meaning you would spend $782 on solar this year, but. You'll also see a huge tax break! The Feds give you 30% of the cost of your system back as an income tax credit, which in this case means $5,063. You'll be paying over time but getting the benefits up front! But wait, there's more! On top of the electric bill savings, you'll earn special Solar Renewable Energy Credits (SRECs) for the first 5 years your system is running. You'll get one each time your system produces a megawatt-hour (MWh) of electricity, and our example 5-kW will earn you about 5.5 SRECs each year. You can sell your SRECs to the utility company for $39 a piece, putting an estimated $215 in your pocket. All those incentives mean you'll come out $4,494 ahead after year 1 . Your loan payments will be about $65/month more than your energy bill savings, but that difference will get smaller as the utility company raises rates every year. By the time you've paid off your loan in 2030, you'll see yearly savings of about $1,400. After 25 years, your total profit will be $14,223! On top of the green that will stay in your pocket, your system will mean green for the environment, too—106 trees-worth, every year! Keep in mind, the numbers above are based on an average home in Pennsylvania. If you're ready for a custom quote for a solar loan, our network of experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page.
Buying Solar in Pennsylvania.
An outright purchase used to be the only way to get solar, and it's still the option that provides the "biggest" financial returns. The reason we put "biggest" in quotes here is because it's technically true, but based on percent return for the money, a loan is a better option.
If you'd rather make monthly payments instead of putting $17,000 down on a solar system, and if you have equity in your home or can get a large loan with an interest rate of 5% or less, a loan is the option to go with. It's like being able to start a business that is sure to succeed, just by having a roof. Read about loans below.
If you've got cash and you prefer to pay up front, you'll have to plunk down $16,875, but tax breaks and energy savings will erase a bunch of that after just 1 year. Over 25 years, your system will have produced more than $21,000 in income, after your system cost is paid back. The reason this works is that solar offsets your electricity costs—enough to save you about $819 in year 1, and it just goes up from there. As the electric company raises rates, you save more and more, and more.
Here’s how the numbers work for a 5-kW rooftop solar system in Pennsylvania:
Installing a typical 5-kW solar system should start at about $16,875 after Pennsylvania's High Performance Buildings Program grant. That's cheaper than solar has ever been, but it still might seem like a big investment. Don’t worry, because after tax breaks and energy savings, your first-year costs will be considerably less than that. The Federal government offers a great tax credit worth 30% of system costs. So take 30% of $16,875, and you've got a tax credit of $5,063. That brings your first-year investment down to $11,812. After the tax credit we subtract your first year’s energy savings, which we estimate to be $819. That reduces your cost after the first year to only $10,995. But wait, there's more! On top of the electric bill savings, you'll earn special Solar Renewable Energy Credits (SRECs) until at least 2021. You'll get one each time your system produces a megawatt-hour (MWh) of electricity, and our example 5-kW will earn you about 5.5 SRECs each year. You can sell your SRECs to the utility company for an average of $39 a piece, putting an estimated $215 in your pocket. Between those SRECs and your electricity savings, your system will pay for itself in just 11 years, and you'll see a total net profit of $21,369 before the end of your panels' 25-year warranty. The internal rate of return for this investment is a solid 10.1%. That beats an investment in a market-based index fund, and it's more reliable, too! And here's a nice bonus to consider: your home's value just increased by more than $16,000, too (your expected electricity savings over 20 years). In addition to all that cash (and home value), you’ve created some green for the earth as well by not using electricity from fossil fuels. It's like planting 106 trees a year, every year your solar power system is humming. Keep in mind, the numbers above are based on an average home in Pennsylvania. If you're ready for a custom quote for a solar panel system, our network of experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page.
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Pennsylvania Solar Policy Information.
Ever wonder why solar seems to be everywhere in some states, but not in others? We did too.
State legislatures and public utilities commissions can enact rules to make solar power accessible for everyone. Favorable rules explain why some of the cloudiest states—New York, New Jersey, and Connecticut, are doing so well with solar, and yet some of those with the most natural solar resources—like Alabama, Mississippi, and Florida—are doing so poorly.
Below is important information about the public policy, rules, and economic reasons that affect your ability to go solar here in Pennsylvania:
18.02% by 2021.
A Renewables Portfolio Standard (RPS) requires utilities in the state to eventually source at least a certain percentage of their electricity from clean, renewable sources like solar panels.
Pennsylvania’s RPS is split into two separate requirements. 8% of the state’s energy has to come from “Tier 1 Technologies” -- primarily solar, wind, and low-impact hydro, along with a few less common forms of environmentally friendly energy production. To be classified as Tier 1 the electricity generally must also have been produced within Pennsylvania. Finally, Tier 1 of Pennsylvania’s RPS includes a specific carve-out of 0.5% for solar power.
All that is a very strong foundation for an RPS. Unfortunately, the other 10% mandate of Pennsylvania’s 18% total RPS falls into “Tier 2.″ Tier 2 energy can be filled by much less environmentally friendly resources – almost entirely large scale hydropower (the sort that simply decimates rivers and entire surrounding ecosystems) and derivative uses of coal.
In order to really support truly clean renewable energy, we’d like to see more of Pennsylvania’s RPS mandate truly green power sources like residential solar power systems. Given the friendly conditions in the rest of the state, a strengthened RPS would solidify Pennsylvania as a leader in solar policy.
Pennsylvania’s RPS is critical to strong renewable energy policy. Utility companies aren't really all that gung-ho about you producing your own power. After all, it costs them money when you use less of their electricity. They also don’t naturally want to give you big payments for energy you're feeding back into the grid. The main reason the utilities are aiding your transition to lower electric bills and offering you incentives to put solar on your roof is because the state forces them to. If the utilities don't hit their RPS numbers, they have to pay large fees back to the state.
What's an RPS? Your state legislature paves the way for strong solar energy incentives to flourish by setting standards for renewable energy generation within their territories. Those standards are called the state’s renewable portfolio standard (RPS). If utility companies do not meet these standards, they must pay alternative compliance fees directly to the state. Many utilities then determine the best ways to source their energy from renewable sources that are less expensive than this fee.
An RPS is a mandate that says "Hey utilities! Y'all now have to make a certain percentage of your electricity from renewable sources. If not, you'll have to pay us huge fines." The consequences are good, because utilities usually try to meet these RPS standards by creating solar power incentives for you, the homeowner. Read more about Renewable Portfolio Standards.
RPS solar carve out.
Grade: C.
Specific carve-outs for clean and efficient technologies like solar panels, or mandates for the environmentally necessary increases in distributed generation, typically promote stronger incentives for residential solar power. Pennsylvania’s RPS includes a pretty commendable solar carve out which requires 0.5% of total electricity generation to come from solar panels. That’s what we like to see!
What's a solar set aside? A solar set aside guarantees a specific portion of the overall renewable energy mix generated comes from the sun. For those states with progressive standards, high alternative compliance payments, and clear solar carve outs, the faster those areas become ripe for solar.
Some states have higher alternative compliance fees than others, and some states have more progressive alternative energy standards and deadlines than others do.
For instance, New Jersey has an overall RPS of 22.5% by the year 2021. That requires local utilities to source 22.5% of their energy mix from renewable sources by the year 2021. Pretty good. However, New Jersey also has a specific solar set aside of 4.1% by 2028. That’s the type of firm commitment which really gets the industry rolling forward. No wonder why New Jersey is one of the hottest solar markets right now!
Pennsylvania Electricity Prices.
Grade: B.
Pennsylvania homeowners pay an average of 14 cents/kWh of electricity. That’s pretty close to the national average of 13 cents/kWh, but we still think that’s pretty cheap. We know what you’re thinking … higher than average, that’s bad! Who likes paying more than average? We get that sentiment. We really do. But here at SPR we think that electricity rates are still too cheap, even at nearly 14 cents/kWh.
We know you like paying less now, but the long term costs of cheap electricity are through the roof. All that cheap electricity is produced by burning fossil fuels -- tons and tons of earth-killing fossil fuels. When the astronomical environmental costs start to mount, monthly electricity bills are inevitably going to rise as well. When that happens you’re going to feel pretty darn smart for making the early switch to producing your own clean, efficient solar power. In the meantime, solar power will still save you a chunk of change here. We’ll go over just how much in a minute.
Why are electricity prices so important? Because that is what solar power is directly competing against. The cost to produce power with solar is relatively constant (of course how much sun hits your area has an effect), so if you are paying $0.40 per watt for power, then you make FOUR TIMES AS MUCH as the guy or girl paying $0.10 per watt electricity.
The caveat here is that if the $0.10 per watt person has a HUGE rebate, they may be better off than the $0.40 per watt person. Because of that, states without any renewable standards tend to be heavily reliant on cheap coal for electricity, and also have very low electricity prices. When electricity prices are artificially low, that hinders the ability of solar energy to achieve meaningful payback in the state.
Pennsylvania Net Metering.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus.
Since 2008, Pennsylvania law has required all investor-owned utilities to offer net metering to all residential customers with solar power systems up to 50kW in capacity. If you produce more energy than you consume the surplus is carried over to your next bill at the full retail rate. If you run a surplus for a full year (measured June 1 – May 31), your utility will cut you a check for all of it at the “price-to-compare” rate, which includes the generation and transmission components, but excludes the distribution component charges of your electric bill. While a check at the full retail rate would be even better, the majority of states do not require the utility to cut you that year-end check at all, so kudos to Pennsylvania on this one, regardless of the slightly reduced rate.
More recently, Pennsylvania has been exploring an expansion to net metering that would allow systems sized to produce up to 200% of the owner's usage. At a time when other states are restricting or eliminating net metering this is great news!
What is net metering? Net metering is the billing arrangement where you can sell excess electricity back to your utility for equal the amount you are charged to consume it. The more customer friendly net metering policies, the higher the grade.
The grade here specifically reflects individual solar system capacity, caps on program capacity limits, restrictions on “rollover” of kWh from one month to the next (yep just like cell phone minutes), metering issues (like charges for new meters), Renewable Energy Credit (REC) ownership, eligible customers and technology (the more renewables the better), being able to aggregate meters across the property for net metering, and safe harbor provisions to protect customers from solar tariff changes.
Pennsylvania Interconnection Rules.
Interconnection rules are a little technical, but they basically allow you to “plug in” to the electric grid with solar panels on your roof. The more complex, out of date, or nonsensical the state rules are for plugging into the grid, the lower the grade.
Specifically, the grade reflects what technologies are eligible, individual system capacity, removing interconnection process complexity for smaller systems, interconnection timelines and charges, engineering charges, prohibiting the requirement of unnecessary external disconnects, certification, spot interconnection vs. wide area interconnection, technical screens, friendliness of legalese, insurance requirements, dispute resolution, and rule coverage.
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Solar Incentives in Pennsylvania.
Pennsylvania Solar Power Rebates.
10% of costs.
Back in 2010 we wrote pretty extensively about the benefits of the Pennsylvania Sunshine Program. At the time, that program was huge, with a budget of $100 million pushing solar throughout the state. The good news is that the Pennsylvania Sunshine program was a smashing success, helping to exponentially raise Pennsylvania’s solar energy production capacity. The bad news is that the program was such a success that the solar portion of the Pennsylvania Sunshine program is in 2013, the program ran out of funds.
Thankfully Pennsylvania realized how great it is to continue supporting solar with great incentives. The state now offers its High-Performance Buildings Program, which offers either grants or low-interest loans to homeowners and small businesses who want to go solar.
The grants are equal to 10% of project costs, up to $500,000. Loans are available at very low interest rates, but since you can't take both a loan and a grant for the same building project, we recommend the grant, because it will save you more money than the loan.
How do solar rebates work? Similar to getting a rebate card from your local big box store for a dishwasher purchase, state legislatures also provide rebates for solar panel purchases to spur on investment and create new jobs. If you purchase the solar panel system yourself, you qualify for this free cash, which many times is a lump payment back to you. Some solar installers like to take this amount directly off the total installed price, and they'll handle the paperwork for you to make things a lot less complex.
The availability of state and utility rebates were sourced from the Database of State Incentives for Renewables and Energy Efficiency. The better the rebates, the higher the grade.
Pennsylvania Solar Power Tax Credits.
Unfortunately Pennsylvania lacks any state tax incentives for renewable energy as well. Hopefully with the SREC payments, you don’t need any extra help on tax day. But now that the rebate program is exhausted, we think a tax credit available to those who install solar power systems from here on out would be a pretty easy way to sweeten the deal again. All those smart and sensible Pennsylvanians that want to switch to solar power save some cash, and the state never has to remove a dime from its coffers. Sounds like a win-win to us!
About state solar tax credits: State tax credits are not technically free money. However, they are 'credits' and not 'deductions' which means that if you have the tax appetite to take advantage of them, then they can be a 1-to-1 dollar amount off your taxes instead of a fraction of the cost of the system. So that means they can be an important factor to consider. In certain circumstances, state tax credits can provide a very powerful incentive for people to go solar.
(Keep in mind, we are not tax professionals and give no tax advice so please consult a professional before acting on anything we say related to taxes)
The availability of personal tax credits for solar energy were sourced from the Database of State Incentives for Renewables and Energy Efficiency. The higher the tax credit amount, the higher the grade.
Solar Power Performance Payments.
approx $15-$55/MWh.
In order to meet those RPS requirements, the utility companies have to produce or purchase a whole lot of electricity produced from renewable sources. More often than not it’s easier (i. e. cheaper) for them to simply buy the energy from others, like folks with solar panels on their roof, than it is for the utility to produce it themselves. That’s led to a market for Solar Renewable Energy Credits (SRECs). For every megawatt-hour (MWh) of solar energy you produce, you get one SREC (Pennsylvania actually calls them Solar Alternative Energy Credits, or SAECs, but we’ll use the multi-state lingo). Utilities buy those SRECs in order to get credit for the solar energy toward the utility’s RPS requirements.
Prices can vary, but current market prices set the average value of SRECs at about $18-$55 each, though prices can vary significantly for individual transactions. That’s not too shabby. It’s also easy to see how a stronger RPS ties directly into incentives like solar power rebates getting stronger as well. If utilities need to buy more SRECs to comply with the RPS, there is going to be more competition to buy the available SRECs, and thus SREC prices will go up.
Explanation of performance payments: Performance payments represent a big chunk of the financial rationale for going solar, and in many instances they make your decision a wise one. For certain states, if you’ve got solar panels on your roof, not only will you be cutting your electric bill down to size, but you'll be getting paid additional cash from your utility company. Pretty awesome, huh? Not only are you generating electricity for yourself, freezing your own popsicles with sun, and feeling like you’re doing something smart for your children or any of the other 4 reasons people go solar, but you are getting PAID!
Utility companies are paying people with solar panels on their roofs because their states say they have to, otherwise they will pay a fee. Therefore, the payment amount to homeowners is typically a little bit less than the amount they would be billed for by the state. For states with these alternative compliance fees, Solar Renewable Energy Credit (SREC) exchanges have popped up. In the above chart, we outlined an estimate of yearly payments a homeowner might expect from the utility company for the SREC credits from their solar energy system.
Expected SREC payments were calculated by using the latest trade values in the SRECtrade database. The availability of feed-in tariffs were sourced from the Database of State Incentives for Renewables and Energy Efficiency. The higher the expected monthly payments, the higher the grade.
If you don’t know what an SREC is, or how they work, check out this great SREC video.
Property Tax Exemption.
While we can give state lawmakers a pass on not having implemented a state tax credit in the past (even if it’s time for one now), we’re a bit less forgiving when it comes to not having any state tax exemptions. Tax exemptions are perhaps the simplest things that state legislatures can do to create good solar policy. They’re simple to draft, simple to explain, and simple to implement. Despite that simplicity, the benefits are robust. A property tax exemption would save you year after year by preventing any increase in taxes normally associated with your home’s value (we’ll get to that in a minute).
The state legislature has done a lot of tremendous work to promote solar power, and tax exemptions represent an easy but effective way to do exactly that.
About solar property tax exemptions: Property tax exemption status is a pretty big factor when putting together your investment considerations. Many argue that solar power adds approximately 20 times your annual electricity bill savings (if you are owning the system and not leasing. Leasing still has a positive impact on the ability to sell your home though, in our opinion).
For many average-sized solar power systems on a house, that can mean $20,000 to your home value. (Edit April, 2014: Some companies, like Solar Mosaic, are starting to offer traditional style equity-based home loans for such a thing). An additional $20,000 in property tax basis in many states amounts to a big chunk of change owed back to the state. However, many states have complete exemptions from added taxes when you install solar on your home!
The availability of a property tax exemption for solar energy was also sourced from the Database of State Incentives for Renewables and Energy Efficiency. The stronger the tax exemption, the higher the grade.
Sales Tax Exemption.
Like we mentioned above, tax exemptions are perhaps the simplest things that state legislatures can do to create good solar policy. Despite that, Pennsylvania has yet to implement either property tax or sales tax exemptions for renewable energy producers. A sales tax exemption would quickly and easily save you between 6% and 8% here.
What's the deal with solar power sales tax exemptions? When states give you a sales tax break on solar, we notice. Você deveria também. State sales tax exemption status for the purchase of solar energy systems were sourced from the Database of State Incentives for Renewables and Energy Efficiency. Sales tax exemptions, if present, were all 100%. A handful of states are completely exempt from sales tax regardless, and therefore received ‘A’ grades by default (OR, DE, MT, AK, and NH).
The consensus on Pennsylvania solar power rebates and incentives.
Just a few years ago Pennsylvania was near the top of the solar heap, boasting one of the strongest solar power rebate program in the country to go along with solid performance incentives and strong net metering laws. Unfortunately, with the rebate program now exhausted, the picture is not nearly as sunny for solar. The absence of tax exemptions are more glaring omissions without that big rebate check overshadowing them and the SREC payments, while solid, aren’t dragging payback time frames into “A” range by themselves. All around Pennsylvania is still pretty OK – but it’s also just OK.
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77 thoughts on “ 2018 Guide to Pennsylvania Home Solar Incentives, Rebates, and Tax Credits ”
I own 150 acres of land in pa and run a summer camp on them i have enormous usage for two months a year and almost nine the other ten. Would anyone know if it would be cost effective for new to install enough panels so that i would be able sell enough electricity during the year to have substantial savings in the summer?
I live in Waverly NY but electric is supplied by Penn Electric. Transmission wires and all it in tails. Would l still get the over produced energy sold back to Penn Electric.
i own 2 homes in philadelphia and and have solar panels installed on both i am interested in seminars about solar energy in my area to learn all i can about solar energy and my savings.
We own a mobile home, 10 years old and are interested in leasing solar panels for electrical usage. Our unit measures 28 Wide by approximately 59 feel long. I’ve tried twice to secure a quote, and waited by the telephone but NO CALLS. Can you advise if we are qualified to use solar panels, ( leasing) and how much we anticipate in savings? We live near Pittsburgh and recognize the sun doesn’t shine a great deal of the time. I would appreciate a reply. Thanks, Jerry Kline.
I’m sorry you didn’t receive a reply. A mobile home often lacks the roof support system needed to support a solar system and in many areas, mobile homes are in parks that do not allow for ground mounted systems so it is very unusual to be able to install a solar system on a mobile home. However, if you own the land your home sits on and there is sufficient room to install a ground mount system, simply indicate that you are interested in a ground mount system. In answer to your question, assuming you are paying the state average of 13 cents per kilowatt currently, a solar system can make an excellent investment for you. Your actual savings will depend on your cost of installation, etc, but at 13 cents per kilowatt, it’s definitely worth pursuing if it’s an option for you. Your installer will be able to provide you with a detailed cost savings based on your actual usage and current electricity costs. I hope that helps!
I put not real phone # becasue Im deaf, I rather you contact me by email. I own more then 5 acres, and interest black solar panel without reflection . Im serous.
Hi, I’m certain the installers will be happy to work with you via email and other methods suitable for a deaf customer. Simply follow the link to contact an installer and mention what you said here, that you prefer the initial communications to be via email because you are deaf.
I put not real phone numbers 610 845 0001 becaue Im deaf , so you have to accept to contact me by emails if you dont then you are discrimatation . So contact me by email , this is important, I own more then 5 acres and want to lease black non reflection solar panel or solar power window, Im sure you know what Im talking about.
Hi, I’m certain the installers will be happy to work with you via email and other methods suitable for a deaf customer. Simply follow the link to contact an installer and mention what you said here, that you prefer the initial communications to be via email because you are deaf.
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hi my wife and i really want to have solar. our house is perfect location. all day sun direct our house from 9am til dusk. we want to add yr listing. thank you so much, james.
We would like to add our Solar company in you r Pennsylvania listing.
I believe the correct course action would be to contact the local utility company to make sure a “net meter” was installed at the time of commissioning. This will allow for the home owner to sell any excess electricity back to the utility company. Also they should contact Clean Power Markets 877-237-7773 or paaeps/ . This orgainization is responsible for registering all alternative energy systems within the state of PA. Once the system is officially registered within the state it will be elgible to sell the renewable energy credits the system is producing. There are also people called aggregators who will help get the system registered and help in the process of selling the credits as they accumulate. We recommend using Knollwood Energy 908.955.0590 It’s hard to say if the system was registered, but Clean Power Markets should be able to tell them if it was, and what the next course of action should be.
I purchased a house in Pittsburgh, PA and it currently has solar panels installed, what do I need to do to receive the rebate credits over the years of ownership. I have heard about the program but was never formally notified when I purchased the home. What do I need to do from here?
I would like to know if there is any State money out there to support a non-profit organization that wants to go solar but needs industrial solar panels? Thank you for a response.
Is there a problem with going all solar or just partial in PA or is it ownly in certain places in PA? Also, to even own solar equippment with the intent to use on or in your home do you have to get anyones permittion?
I am thinking about moving out to either Brandywine or Oxford MD. I wanted to know if there were any probitions on having solar panels installed either a connection in my backyard to my house or on my roof?
In your December 2010 update you mention Pittsburgh but you only have Philadelphia suburbs listed. Are there any suggestions for Pittsburgh in the works?
I would like to explore solar panels for our church. Are there state grants for churches?
What is the Pa. grant for a commercial.
Put them up any way and make them hire a lawyer……it will be a pretty penny…….then take the panels down thw day before you court date, thus canceling the affair….then put them up a week later……..repeat as necessary.
Your story is sadly common in many areas. And sadly, you may need a lawyer to ultimately resolve this issue. However, I would recommend several tactics for persuading your HOA to reconsider.
1) First, I would contact votesolar and SEIA, the Solar Energy Industries Association. This is a common issue and they may have resources that you can use.
2) You might call/contact your congressmen and Pennsylvania legislator, and especially the governor’s office. Gov. Rendell is very pro solar, as you know. Staff there may also have recommendations.
3) If you really want to escalate things and perhaps upset neighbors, call the local media. Your newspapaer and all of the t. v. stations. Point out that there is a very good solar program going on, but HOAs like yours are standing in the way of you being able to take advantage of the programs.
These are all arcane laws. California and other states have prohibited HOAs from prohibiting solar panels, and yet HOAs still sue homeowners, even here. Their cases are ultimately without merit, since the law is fairly explicit, yet HOAs still try and after some legal bills, the cases are dismissed.
As far as I know, there are no laws in Pa preventing HOAs from dictating to you about solar. Again, I urge you to contact the above solar organizations for more advice and after that… head for the media. Someone has to lead the charge against this injustice to our planet and your local environment and your realty “right of happiness”–I believe that’s a legal term, even. You may have to be the test case.
Please let us know what you discover so that we can share it here for other Pa solar buyers!
If anyone else has experience with Pa HMO’s, please leave a comment as well!
Please help with any info you can!
To my dismay my HOA has declined my request to go solar. My plan was to use my rear south facing roof with low profile black solar panels. No wires would exposed and the frames of the panels would be black as well. I guess it’s my fault to be this naive in thinking that a HOA could stop a project this important to our planet. It’s my understanding that I can’t even take the matter before the township without the HOA approval.
My local township is East Fallowfield, Pa just outside Coatesville and West Chester Pa. The HOA for Brook Crossings Development is two people and from what they tell me a Attorney that reviewed the HOA bylaws. They concluded “Section 6.1 of the Declaration, solar panel arrays are not harmonious in design with the.
design of your unit or that of others in the community.” One of the problems with this statement is Solar Panels/Arrays are not mentioned in the declaration at all.
How can this not be harmonious, not only within the development but the planet as well? Is there any person and or organization that can help? Please I can’t just sit back and let this happen not just for myself but for those who will want to make a difference in the future!
This type of thinking has put this county light years behind others in the world. What can be of more integrity than spending your time and money converting over to clean energy and reducing your foot print on the planet, saving it for future generations to come.
I’m not trying to be smart or malicious but short of bringing our troops home safe, there can be no greater cause in this country right now.
I am retired and payout much money for doctors and such so the 30% from the Feds will not be of any help unless someone out there knows how to get that money in a grant.
i love the comments and great feedback. i’m thinking about starting a company and targeting residential townhomes. i was wondering if you could recommend a solar panel company to get info from, and are there any small business.
grants available to help me get started? are there any seminars in the chester county area offering solar information?
Just a note to any one who did or is going to install salor on your own. The city of scranton is making me pay a fine for my self installed system. I am disabled and there for can not accsess the roof of our home. The panels are set in the side yard and feed to a controller that charges the set of only 6 12volt batterys, We use it to maitain low voltage lighting. We are not hooked to the grid. Pa just wants money for what somebodies else does. this is only a 12volt system. self installers beware.
What’s the latest from the Energy Cooperative of Pennsylvania? They or other utilities should be buying the solar power at pro rata prices. If we can’t sell the electricity our grid systems will generate, why would anyone be interested in doing this except for purely altruistic reasons?
Hi We are looking into putting a 60 kw on the roof of our small business. We need to know if the SREC income can be paid to us monthly or qaurterly instead of yearly so we can pay on our morgage better?
Mike… Não tenho certeza. I think you can submitted on the SREC market whenever you produce a certain amount of kW, but I’m not certain about that. Please contact someone from srectrade. They’re the experts and will give you more details about the SRECs than I can find.
60kW sounds great! Bom para você.
Mike & # 8211; If you are still interested and are a profitable business we will install your system for only your would be tax dollars and offer you a $.06 fixed electric rate for 16 years.
Thanks for the tax info..Now for a solar question… I have a contractor coming out next week to check my site for a system. His company charges $8.00 per watt for a ground mount system. My wish is to have a 6kw system, but at $8.00 a watt that comes to $48,000. Even with the state and Federal rebates the final cost to me for the system comes to around $23000 after state tax is added. Thats a little tight for me to handle so heres my question….is it possible to have a system installed (inverter, etc…) that will handle 6kw but only install panels equal to 3kw (3kw system = $24,000 with final cost of about $11,000+ inverter etc. upgrade) and as money becomes available, add additional panels to the system. I know that the upgrade for the inverter etc., will cost extra no doubt and I realize by doing this I cannot receive a tax credit for any future panels installed, but by doing this I have the option to add to the system in time when monies are available verses buying upgrade equipt. mais tarde. Thanks for your input….
Absolutely, that’s possible. More so than ever with “micro inverters.” Check our our archives about micro inverters. It’s very modular. Even going with a central inverter, what you described is certainly possible, although, as you noted, you won’t get any more rebates for the panels or installation. Going halfway can be very cost effective by itself if you have a tiered rate system with your utility. When you go modular without micro inverters, it does become less flexible, however, and you may need to buy the same exact panels later on for the best efficiency. Keep in mind that micros can get more expensive, also, although they may pay for themselves in their improved efficiency. 8 bucks a watt seems okay for a ground mount, but I would certainly recommend to everyone to get 2 if not 3 quotes and compare apples to apples price comparisons. In other words, if you’re comparing 8 bucks a watt, ask all of the people quoting you to give a quote in $/”DC Watts STC” or $/”AC Watts.” or $/kWh. Right now, DC Watts STC is most common. I’m assuming yours is $8/watt DC STC.
Check out these related articles here on Solar Power Rocks:
Espero que ajude.
I have read all the comments on this board but can’t find the answer to my question. Here it is… (When filing yearly state and federal taxes)If you cannot claim all of your tax rebate in one years filing, can you roll over the difference the following year or years until exhausted?
Yes, Frank. You can carry over the 30% tax credit. How many years exactly is unclear, but at least until 2016 when the federal ITC expires. That’s our understanding, but you should always double check with your tax person, since we’re, you know, 3 solar dudes, not 3 tax dudes.
Is the state rebate taxed by the federal government?
Mitch, I’m unsure about that, honestly. It varies by what tax person you talk to, so go with the advice of your expert. Sometimes they consider these rebates as a “reduction in price” rather than “income.” Again, please check with your tax person with their understanding of the guidelines.
My contractor sources say the rebate paperwork is submitted by the installer on behalf of the customer to insure efficiency levels and state requirements are being met. Should the customer owe the state any moneys they are ineligible for state rebates. Any rebate moneys due, by law, MUST be paid to the customer directly, only after the state receives proof of final payment to installer.
Therefore, does this qualify as a prevailing wage job? Thanks for your help and comments.
Does the solar energy installation come under the guidelines of the pa prevailing wage act? The project must be completely paid for before any government moneys come into play and then go to the customer as a rebate not the installer.
Stan, Short answer: We don’t know about the prevailing wage act. Not sure you’re right about the subsidy being fronted by consumer, however. If you’re talking about residential, I believe under the Sunshine program, the consumer must fill out an application after being approved by the installer for solar (meaning that their home is right for solar and has enough sunlight, roof orientation etc.) and then submit the application through the installer, who in turn submits it to the State program. I believe, but am not certain, that it is the installer who gets the rebate check if the consumer signs off. Obrigado por comentar.
hi dave form williamsport i just started my co. Renewable Energy For Pa llc . the D. E.P have been a big help. my email add is dave@renewableEnergyForPacastbiz i have been installing these systems for 3 plus years and i cant wate to get the first one for my own co.
I agree completely we are starting a new business in this area and it seems we are fighting an uphill battle all the way. All I want to know is what tax credit is availible and how do I go about getting it. I’ve spent hours on the web trying to figure this out only to be left more confussed then ever. HELP!
How does one become a state installer if you have to install at least 3 systems before you get on the list as a contractor. Is there any exception to this? Where can you apply to become a certified installer.
HI im dave i live in williamsport and i have been installing these systems for about 4 years, i am starting a renewable energy business and found an outline draft on how the state will only give grants to the systems that are installed by NABCEP Certified installers and they want energy audits to that have to be done only by RESNET OR BPI CERTIFIED I beleive this will stop a lot of people from getting one installed i have installed more of these systems than i can count , at least give us time to get the classes and test.
So much for the State giving it more than PPL. Solar is actually excluded from the rebate-eligible expenses. Look at this site and “Advanced Performance” (keystonehelp/info/eligible. php)And, you have to use one of their contractors. IMO, as long as the materials are certified Energy Star and the Contractor is registered and I can prove that they were installed correctly, that should be enough. FPhhfffft.
Does anyone have information on solar hot water rebates, installers or contractors?
so are there any rebate now.
Good to know folks in Pa. are paying attention(not just paying ppl).Being from Ca. I wasn’t sure how solar would be received, and am now confident the time is now!
Mark, it’s a $2 to $2.5 per watt rebate for PV. I have it from a good source that it’ll start in April. Here’s a draft of the legislation: paenergyfest/downloads/09-Jan-SolarProgramOutline. pdf.
Does anyone know what % of a tax credit or rebate will be allowed for PA? Everything that I found for the State is for 08. Nothing for 09 yet. I have the Fed information, but can’t find anything exact for state rebates. Thanks in advance!
We wanted to Announce an Energy Expo for Northeastern Pennsylvania.
The Pocono Northeast Resource Conservation and Development (RC&D) Council is a 501©3 non-profit organization that has been active within northeast Pennsylvania since 1980. The Pocono Northeast RC&D is a regional organization that encompasses and serves the following ten counties: Carbon, Columbia, Lackawanna, Luzerne, Monroe, Montour, Northumberland, Pike, Schuylkill, and Wayne.
The Pocono Northeast Resource Conservation and Development (RC&D) Council and its partners will be hosting the Northeast PA Energy Solutions Expo on June 13-14th, 2009 at the Luzerne County Fairgrounds in Dallas, PA. The event will focus on alternative and renewable energy opportunities as well as energy conservation for residents, landowners, municipalities, regional governments, and local businesses. The intent of the Expo a forum where people can come to see, witness, and learn about potential conservation and alternative energy solutions.
i am a do it yourselfer, and i have been unable to find any where that i can get the info i need and purchase a roof system for my home. of the places i found on th internet in pittsburgh area, they are all contractors and no help, with info do to my wanting to do it myself. can’t find anyone who will sell to the do it yourselfer. any info on where i can find whatever it is i need, please help!!
I understand the frustration over this whole alternative energy incentive thing that is lacking in our Keystone State. Seems none of our elected officials can get it together.
If you need some assistance in lowering your energy bills I may be able to help.
I’m doing it in my home.
Hey guys, for information on finance and incentive help in PA try disireusa. Its a database of state incentives for renewable energy. Federally the only real incentive is the 30% direct tax credit for the installation. That is not a deduction but a direct cash credit (same as cash) of 30%.
Anyone interested in signing up to hear exactly what the PA credits are, and exactly when they are going to be released, please visit ahs2.dep. state. pa. us/aeifsignup/ Please feel free to post back with any further questions. We expect to hear something definitive around March 2009.
I watched a little bit of the meeting between Obama and the governors last night and was wondering if anyone caught any concrete plans for solar subsidies in PA.
GOOD OLD RENDELjUST A BAG OF “HOT AIR”.
ALL SHOW AND NO GO!!
Here’s the latest word I’ve heard from the DEP about when residents can expect to hear about taking advantage of the Renewable Energy rebate program; the program is being funded by a bond, so they can’t activate the program until the bond has been issued. In our current economic situation, they’re not sure when that will happen. They’re projecting mid-2009. There will likely be stipulations that will determine your rebate eligibility, particularly energy efficiency; if you’ve demonstrated energy reduction in your home and/or have had an energy audit, you’re more likely to get a higher rebate (the maximum we’ve heard is 35%). I’ve also heard that there will be tax credits available as part of the program co-administered by the Department of Revenue.
Hello to all you folks talking about solar energy. Over the past 9 months I have designed and build my own solar water heating system. Over the past 3 months I have reduced my natural gas bill by approximately $50.00 a month and my investment was around a thousand dollars. The materials need to build a solar thermal collector are available at many plumbing supply stores. Good plumbing skills are a must have, if you wish to build your own system. I originally got most of my idea from builditsolar and just went ahead with what I wanted to do, make hot water with sunshine.
The state rebates are still being dickered over, as I understand it. The federal “30% up to $2,000” is good for systems up and running by Dec. 31 2008. That cut off has been moved before, and (esp. if you call your congressman and senator) could be renewed / extended again.
use dsireusa/ to track funding opportunities; there are quite a few low-interest loans. Most Solar companies will help to hook you up with one. I would suggest buying a bit more inverter than your panels need, BTW, in case the panel cost and efficiency both improve in the next decade, so you can slot in a spare panel or two. BTW, with the federal credits currently slated to expire, good, fully sealed “made in USA” panels like the ones I got from solarworld-usa are in considerable demand!
I provided an update today regarding the status of Pennsylvania homeowner rebates, incentives, and credits. Which ‘list of choices’ are you referring to?
Thank you all again for your comments and suggestions.
Please post something for the individual residential homeowner, there must be some funding out there and hybrid (solar and wind) systems are not on you list of choices.
I’m a retired NYC Police officer that fell ill after 9/11. Yep, I’m one of those guys that you hear about who are sick, and getting the shaft by the City. So seeing as I am on Social Security and 100% disabled, and living with my father who is also on social security, I need to find a way to lower my energy bills drasticly now. I want to go green, and get off the PPL trough. My dad and I live in a single wide mobile home in a nice area in PA, and the trailer faces exactly south with no obstruction. I was wondering if we’d qualify fir some kind of grant, or special loan to get full solar power up and running. We have only like 1100 sq feet. Isso é possível? Qualquer ajuda seria muito apreciada. Feel free to email me: nypd219@gmail.
I find it kind of funny that the governor of the state has a solar roof and gets a $20,000 grant to have it done but the working Keystoner can’t get any definitive answers when it comes to financial assistance. (lost the link to the page will post it when I find it)
Thank you for your concern and comments. We’re doing the best we can to accurately reflect what is going on incentive and rebate-wise for Pennsylvania homeowners. From the installers we have spoken to in our network, there is some consensus that solar will not be an easy option to pursue in Pennsylvania for at least a year or so. That is in comparison to other states with much clearer goals and passed legislation. When the aforementioned bills get passed, we plan on reporting what it takes to acquire solar in a fiscally responsible manner with an actual example from a Pennsylvanian family. Again, thank you for your concerns and comments. We’re not here to be predatory misinformers. If you could, please share your experiences with your contractors that came out to your home. Everyone reading this page will benefit.
Careful Everyone. I’ve done some pretty extensive research and so far I have yet to see a site that deals exclusively with homneowners, residential, and individual use assistance, grants, and reasonable financing. I’ve had 3 or 4 contractors out to the house and I get the sense there will be some predatory activity initally given the intense interest as of late. ITS STILL THE RIGHT THING TO DO, but dont get sucked in too fast. Im pretty sure it can be done for a reasonable cost, but they’re not gonna make it easy as you can all see. Anyone find a site thats really helpful and informative to an average, middle class residence inquiry in PA, please let me know.
I got a quote but the “grant” would have sign over my energy credits indefinitely. Does anybody know why the grant program has changed its format so many times?
This news release was on the PA DEP website. It mentions “$100 million to provide loans, grants and rebates that cover up to 35 percent of the costs residential consumers and small businesses incur for installing for solar energy technology”. Here is the web address. ahs. dep. state. pa. us/newsreleases/default. asp? ID=5150&varQueryType=Detail.
I see nothing on this page for financial help for PA homeowners…just small business. It is an enormas expense…how does one get help?
Didn’t the legislation just pass? Please be the first to post information about residential renewable credits from PA.
Queridos amigos! As I can see from your questions, you are homeowners like me. Unfortunately, there is no rebate program for homeowners in PA right now. Governor Rendall stepped forward last year with so calle Sunshine Initiative, which stipulates 50% rebate for us, homeowners, but this initiative still did not passed Senate. We have to write or call to our Senators to move ahead with this bill asap. Meanwhile, Ihave installed 3.1 kwt Solar System myself and have been enjoying free clean energy.
Olá. Does anyone check the postings on this site? I to would like info for residential solar power incentives.
I am like the rest of the people psting here. All the listed information seems to be geared to the business owner and not the home owner. Where can I find information for the homeowner that wants to install solar and find possible wources of help?
Hi. Im interested in getting solar heating for my home. The fuel bills will put me out of my house if I cannot come up with something more feasible. But like Brian asked, where can I find out about info on solar ins. and rebates for residental use? Obrigado.
The sites listed above are all for small business. Where can I find info about solar panel installation and possible rebates and tax advantages for residential use?
These sites all seem to be for businesses. Where can I find information about solar rebates for residential homes.
The site at Find Solar is really great for general information and is geared toward the home owner. It also can link you up with customer recommended installers.
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