The Solar Tax Credit / Investment Tax Credit (ITC)
The federal Investment Tax Credit (ITC), also known as the federal solar tax credit, is one of the most lucrative solar incentives for homeowners. Through the solar tax credit, homeowners can claim a federal tax credit that’s worth a percentage of the total cost of their solar installation project and solar batteries may also qualify.
However, the solar tax credit is on a declining schedule, which means you need to act quickly if you want to take advantage of it. In 2020, 2021, and 2022, the credit will be worth 26% of your total installation costs and you must be installed and placed in service by December 31, 2022 to qualify. In 2023, that number will drop to 22% and in 2024 it will be eliminated for homeowners unless the solar tax credit is extended again.
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