The federal investment tax credit (ITC), sometimes referred to as the solar tax credit, allows you to deduct a percent of the total cost of installing a solar energy system from your federal taxes. There is no cap on the value, and the credit applies to both residential and commercial installations.
As a part of the Inflation Reduction Act, Congress passed an increase to the ITC, raising the percentage to 30 percent through 2032. For more information, click here. Please consult your tax advisor for more information.