The Federal Income Tax Credit Explained

6.15.20

Maximize Your Savings with the Federal Investment Tax Credit (ITC) for Solar

Switching to solar energy is a smart investment that not only lowers your electricity bills but also offers substantial financial incentives. One of the biggest benefits for homeowners is the Federal Investment Tax Credit (ITC)—a powerful incentive designed to make solar more affordable.

What Is the Federal Investment Tax Credit (ITC)?

The Federal Investment Tax Credit (ITC) is a dollar-for-dollar reduction on federal income tax for homeowners who purchase a solar energy system. This incentive allows you to deduct a percentage of your solar installation costs from your federal tax liability, making solar a cost-effective choice for energy independence.

👉 Learn more about the ITC directly from the U.S. Department of Energy.

How Much Can You Save with the Solar ITC?

The savings from the ITC can significantly reduce your overall solar installation costs. Here’s an example of how it works:

• Average cost of a solar system: $17,760

• ITC savings (30% in 2024): $5,328

• Final cost after ITC: $12,432

This means you save over $5,000 just by taking advantage of this federal incentive!

🚀 Pro Tip: The ITC has been extended at 30% through 2032, making now the perfect time to invest in solar! Read the latest updates from the IRS on Solar Tax Credits.

Do You Qualify for the Solar Investment Tax Credit?

To qualify for the ITC, you must:

✅ Own your solar energy system (leased systems do not qualify).✅ Have a tax liability—meaning you owe federal income taxes.✅ Install the system at your primary or secondary residence in the U.S.

If you typically owe federal taxes, you can apply the ITC to offset what you owe. However, if you don’t owe federal taxes, you may not be able to claim the credit. We recommend consulting a licensed tax professional to determine your eligibility.

How Does the ITC Affect Your Solar Loan?

If you finance your solar system with a solar loan, you can use your ITC savings to pay down your loan balance and lower your monthly payments. Keep in mind that the ITC is a credit, not a rebate, meaning you won’t receive a direct check from the government. Instead, it reduces the amount of taxes you owe.

Take Advantage of the Solar ITC – Act Now!

With the ITC locked in at 30% for the next few years, there has never been a better time to make the switch to solar. The sooner you install your system, the sooner you start saving on energy costs while maximizing your federal tax benefits.

🔆 Ready to go solar? Contact us today for a free consultation and see how much you can save!

📌 Disclaimer: We are not tax professionals. Please consult with a qualified tax advisor for personalized financial guidance.