The Inflation Reduction Act of 2022 has extended and increased the Solar Tax Credit (ITC).
The Federal Solar Tax Credit has changed from 26% to 30% for the next 10 years. All systems installed from 2022-2032 will be eligible for the 30% tax credit.
The solar investment tax credit was established with The Energy Policy Act in 2005. Since then the tax credit has been extended several times.
Quick History of the Investment Tax Credit (ITC)
The Energy Policy Act was created in 2005 and the federal solar investment tax credit (also known as ITC) was put into place. ITC could be used by anyone who owns their solar energy system to be able to claim the one-time solar investment tax credit when they file their federal tax return because it allows for the installation costs of solar energy systems (both commercial and residential) to be deducted.
What does this ITC extension mean?
The first type of Investment Tax Credit was set to expire at the end of 2007, but it has been extended many times since then due to high popular demand. The COVID Relief Bill of 2021 kept the tax credit going for another two years. Whereas the latest extension, known as the Inflation Reduction Act of 2022, has recently gone into effect for ten years. For the next decade, the Federal Solar Tax Credit will increase from 26% to 30%, and solar systems installed from 2022 through 2032 will be eligible.
Take Advantage of the ITC Extension!
Homeowners and other prospective solar customers are eligible for the solar tax credit (ITC)! Going solar during this time is a win-win for people looking to go green and save some green. It is not only a great property investment but also means more solar jobs throughout the United States.
Sungenia Solar Solutions has been trusted by clients, friends, and families throughout San Diego County who are looking for an affordable way to go solar. See for yourself and view our website to learn more about solar incentives, rebates, and referrals through our Sungenia App. Contact Team Sungenia for information on the solar process, the best equipment for your home, and to learn how much money you could save on your solar energy system.
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