Federal Investment Tax Credit (ITC)

Federal Investment Tax Credit (ITC) Definition:

Commonly referred to as the solar tax credit, the ITC effectively reduces the total cost of your solar energy system by 30% with a credit to your federal taxes. It is regarded as the most significant financial incentive for solar in the US.

Breaking Down Federal Investment Tax Credit (ITC):

The Federal Investment Tax Credit (ITC) allows the owners of a rooftop solar system to deduct 30% of the entire cost of purchasing and installing a solar energy system from their federal taxes. This ITC applies to equally to residential and commercial systems through 2019. Starting in 2020 the percentage steps down to 26 percent and then again to 22 percent in 2021. After 2021, the residential percentage will be reduced to zero while the commercial percentage will will drop to a permanent 10 percent.