FEDERAL TAX CREDIT
Up to 30% tax credit*
*This does not constitute professional tax advice or other professional financial guidance and may change based on additional guidance from the Treasury Department. Work with your Certified Personal Accountant (CPA) to determine your eligibility.
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The investment tax credit (ITC), is a credit that can be claimed on federal income taxes for a percentage of the cost of a solar system.
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Expenses covered include the cost of solar panels, labor costs for installation (including permitting fees, inspection costs, and developer fees), balance-of-system equipment such as inverters, wiring, and mounting hardware, as well as home batteries charged by the solar equipment. Sales taxes on eligible expenses are also covered.
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To qualify for the ITC, you must meet certain criteria:
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Have sufficient tax liability.
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Ensure your solar project is installed and operational in the tax year you're claiming the credit.
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Live in the home where the system is installed.
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Own the system outright or have financed ownership (leased systems do not qualify).
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The system installed must be used for the first time on your home.
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For current information on incentives, including incentive-specific contact information, visit the Database of State Incentives for Renewables and Efficiency website.
Please see their published Fact Sheet for additional information.