The Investment Tax Credit (ITC), also known as the Solar Investment Tax Credit (SITC) or Solar Tax Credit, is a federal incentive making solar energy accessible to homeowners and businesses nationwide. This credit allows you to deduct 30% of your solar system’s total cost, including installation, directly from your federal taxes. For instance, a $20,000 system grants you a $6,000 tax credit, significantly reducing your tax liability.
Available for both residential and commercial installations, there’s no cap on the credit amount. However, the credit starts phasing out after 2032. To benefit from the ITC, install your solar system by December 31 of the tax year. If your tax liability doesn’t cover the full credit, you can carry forward the unused portion for up to five years.
This valuable incentive makes solar energy installation more affordable, potentially saving you thousands. Consult your tax professional to understand how the ITC can benefit you. For more information on the ITC and other solar incentives, contact us today.
