The Federal ITC:
Updates for Homeowners Looking to Go Solar
Going solar has become a popular way for homeowners and businesses to reduce their energy costs and decrease their carbon footprint. The federal Investment Tax Credit (ITC) is a key incentive that makes going solar more financially viable for many people.
The federal ITC was in the process of phasing down from 30% to 10% over 4 years, but once the Inflation Reduction Act (IRA) bill was passed, $369 billion in federal incentives have since been allocated to our national energy security and climate change programs – the largest climate investment ever by the US government. The IRA not only extends the ITC at 30%, but goes well beyond any past legislation in its support of the clean energy industry by expanding the tax credits to apply to additional technologies, like energy storage. This ITC increase applies to both business and residential projects, including those installed in 2022, and will last through the end of 2032.