30% Federal Investment Tax Credit (ITC)
Homeowners and businesses across the nation may claim a tax credit of 30% of the cost of a solar system installed on their property. Costs may include labor, assembly or original system installation, and electrical labor to connect the system to the structure’s service main. If the credit earned by the system exceeds a single year’s tax liability, the excess credit may be carried forward to the following taxable year. Currently the federal ITC is set to expire in 2019. The ITC then steps down to 26 percent in 2020 and 22 percent in 2021. After 2023, the residential credit will drop to zero while the commercial and utility credit will drop to a permanent 10 percent. For more information please on the ITC Tax Credit, check out the Solar Energy Industries Association ITC Fact Sheet.