Federal ITC & Incentives

Tax Credit Summary Note: Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376) extended the expiration date and modified the phase down of this tax credit. It also made stand-alone  energy storage systems eligible for the credit, and biomass heaters ineligible for the credit. Biomass heaters are now eligible for the residential energy efficiency tax credit. The summary below reflects the credit after the enactment of H.R. 5376. A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a business or residence by the taxpayer.  

 Solar-electric property -

• 30% for systems placed in service by 12/31/2019 

 • 26% for systems placed in service after 12/31/2019 and before 01/01/2022          

 • 30% for systems placed in service after 12/31/2021 and before 01/01/2033           

• 26% for systems placed in service after 12/31/2032 and before 01/01/2034           

• 22% for systems placed in service after 12/31/2033 and before 01/01/2035           

•          10% for commercial systems placed in service after 1/01/2035   

• There is no maximum credit for systems placed in service after 2008.  -

 Systems must be placed in service on or after January 1, 2006,

 and on or before December 31, 2034.   

 The home served by the system does not have to be the taxpayer’s principal residence. solar energy tax credit- federal solar incentives- residential energy credit