What is the Solar Investment Tax Credit?
A benefit of going solar is that many federal and state tax credits are available to homeowners when they purchase a system.
The Solar Investment Tax Credit (ITC) is a federal tax credit that can be used to decrease the tax liability of residential investors in solar systems. It can be claimed when a homeowner installs a solar system on their home.
How Much is the Credit?
The solar tax credit is currently calculated as 30% of the net cost of your solar system (excluding state and local subsidies). Batteries can be included if powered only by solar.
Solar tax credit is 30% until 2032
Is the Tax Credit Guaranteed?
It depends. Homeowners need to have tax liability. Some homeowners may not pay enough taxes to take advantage of the entire credit. Unused portions may often be carried forward to the next tax year. Certain tax circumstances may prevent the use of the credit. For example the Alternative Minimum Tax. Homeowners should consult with a tax professional for more information.
For more information on solar tax credits in our community, please give us a call at (209) 770-7807 or click the button below.
Disclaimer: Please be advised that we are not tax experts. You should always consult with a tax professional.