The Investment Tax Credit (ITC) allows new owners of solar energy systems to deduct 30 percent of their installation cost from their federal tax liability.
There is no cap on its value. This means that, as long as you own both your home and your solar system, a full 30 percent of the total post-sales-tax cost of your system is deductible.
That’s a huge advantage for early adopters of renewable energy technologies such as solar. Unfortunately, it does come with an expiration date. The ITC credit percentage will begin a tiered reduction on January 1, 2020, when it will drop to 26 percent. It will expire altogether on January 1, 2022. If you’re interested in going solar, don’t miss out on this opportunity for a 30 percent savings!