30 Federal Solar Investment Tax Credit

The federal solar tax credit also known as the solar investment tax credit or itc is the single most important solar incentive available in the united states.

30 federal solar investment tax credit.

The federal solar tax credit also known as the investment tax credit itc allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes. 0 3 18 000 5 400 state tax credit. For example if your solar pv system was installed before december 31 2019 installation costs totaled 18 000 and your state government gave you a one time rebate of 1 000 for installing the system your federal tax credit would be calculated as follows. These two guides one for homeowners and one on the commercial itc provide a concise yet thorough overview of the itc demystifying the tax code with intuitive explanations and examples answering frequently asked questions and explaining the process of claiming the itc.

If you install solar panels before the end of 2020 you will receive a tax credit that is equal to 26 percent of the cost of your solar installation. Your federal tax credit. Since the itc was enacted in 2006 the u s. The solar investment tax credit itc is one of the most important federal policy mechanisms to support the growth of solar energy in the united states.

Solar industry has grown by more than 10 000 creating hundreds of thousands of jobs and investing billions of dollars in the u s. The itc applies to both residential and commercial systems and there is no cap on its value. The 30 federal investment tax credit itc is among the most important incentives currently available for solar pv. The history of the solar investment tax credit.