30% Federal Tax Credit

30% Federal Tax Credit

The Investment Tax Credit (ITC), also known as the federal solar tax credit, allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. Furthermore, 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, but unfortunately, it does come with an expiration date. The ITC credit percentage will begin a tiered reduction on January 1st of 2020, when it will drop to 26 percent. It will expire altogether on January 1st of 2022. If you’re interested in going solar, don’t miss out on this opportunity for a 30 percent savings!

If you’re curious about the details, check out the US Department Of Energy’s page on the ITC.