There is a federal tax credit of 30% that many homeowners who purchase solar systems will qualify for. Plus, there might be local incentives available, too. These solar incentives can help reduce the investment you’ll make in harnessing and storing power from the sun.
Also known as the investment tax credit (ITC), this credit can be claimed on federal income taxes for a percentage of the cost of a solar system. In August 2022, the Inflation Reduction Act was signed into law which raised the ITC credit from 26% to 30% and extended it through 2034.
Depending on where you live, there may be state or city-level programs available. These often are in addition to the federal credit, and savings can add up! We know tax credits, incentives and rebates can get confusing, but it’s worth taking the time to do your research and talk with your local installer to find out more.
This information is for informational purposes and is not provided, and should not be relied on, as tax, legal, or accounting advice. You should consult your own tax, legal and accounting advisors for information.