30% Federal Solar Tax Credit
The Federal Investment Tax Credit (ITC) allows you to deduct 30% of your solar system cost from your federal taxes. This is a dollar-for-dollar reduction that can save you thousands on your solar investment.
Understanding the Federal Solar Tax Credit
The Investment Tax Credit (ITC) is a federal tax credit that allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes.
Key Features:
Dollar-for-Dollar Credit
Unlike deductions, tax credits reduce your tax liability dollar-for-dollar
Includes All Costs
Covers equipment, installation, permits, and interconnection fees
Battery Storage Eligible
Tesla Powerwall and other batteries qualify when paired with solar
Carryover Allowed
Unused credits can be carried forward to future tax years
30% savings on your entire solar + battery investment
Federal Tax Credit Schedule
The ITC is scheduled to decrease over time. Act now to secure the maximum 30% credit before it's reduced or eliminated.
2022 - 2032
Current Period
Maximum tax credit available. Perfect time to invest in solar with the highest possible savings.
2033
Reduction Begins
Tax credit decreases to 26%. You'll save less compared to installing solar today.
2034
Further Reduction
Tax credit drops to 22%. Significant reduction in federal savings compared to current rates.
2035+
Residential Expiration
Federal tax credit expires for residential installations. Commercial systems retain 10% credit.
Time-Sensitive Opportunity
The current 30% federal tax credit represents the highest savings available. After 2032, the credit will decrease significantly before expiring completely for residential installations.
💡 Pro Tip: Systems must be installed and operational by December 31st of the tax year to qualify for that year's credit rate.
Who Qualifies for the Tax Credit?
Most homeowners and businesses can take advantage of the federal solar tax credit. Here are the key requirements and considerations.
You Qualify If:
Own Your Home or Business
You must own the property where the solar system is installed
Have Tax Liability
You must owe federal income taxes to claim the credit
New Solar System
System must be new and placed in service during the tax year
Meet Safety Standards
System must meet applicable fire and electrical code requirements
What's Included:
Solar Panels & Equipment
Photovoltaic panels, inverters, and mounting hardware
Installation Labor
Professional installation and system commissioning
Permits & Inspections
All required permits and inspection fees
Battery Storage
Tesla Powerwall and other batteries when paired with solar
Federal Tax Credit FAQ
Get answers to the most frequently asked questions about the federal solar tax credit.
The ITC can be carried forward to future tax years if you can't use the full credit in the year your system is installed. There's no expiration date for using the carried-forward credit, giving you flexibility to maximize your savings over time.
No, you must own the solar system to claim the federal tax credit. If you lease your system or enter a power purchase agreement (PPA), the leasing company claims the credit. However, they often pass some savings to you through lower lease payments.
Yes! Battery storage systems like the Tesla Powerwall qualify for the 30% tax credit when installed with a solar system. The battery must be charged by the solar panels to be eligible. Standalone batteries (without solar) do not qualify.
You claim the credit on your federal tax return for the year your solar system was installed and placed in service. Use IRS Form 5695 to calculate your credit. The system must be operational by December 31st to qualify for that tax year.
No, there are no income limits for the federal solar tax credit. Whether you earn $50,000 or $500,000 annually, you can claim the full 30% credit as long as you have sufficient tax liability. This makes solar accessible to homeowners across all income levels.
Claim Your 30% Federal Tax Credit Today
Don't miss out on thousands in federal tax savings. Our Tesla-certified experts will help you maximize every available incentive and design the perfect solar solution for your Tampa Bay home.
* Tax credit information is based on current federal law and is subject to change. Consult with a tax professional for advice specific to your situation. System must be installed and operational by December 31st to qualify for that tax year's credit.