The Federal Investment Tax Credit (ITC) is a tax incentive offered by the federal government to encourage individuals and businesses to invest in solar energy systems. The ITC allows individuals and businesses to claim a credit on their federal income taxes for a portion of the cost of installing a solar energy system. The credit is equal to 26% of the cost of the solar energy system for installations placed in service by December 31, 2021. The credit then decreases to 22% for installations placed in service after December 31, 2021 and before January 1, 2023.
In addition to the Federal ITC, many states also offer incentives for solar energy systems through their own solar energy incentives programs. These state incentives can take the form of tax credits, grants, rebates, and other financial incentives. The specific incentives available and the amount of the incentives vary by state.
It's worth noting that the Federal ITC and state solar incentives are subject to change, so it's a good idea to check with the relevant government agencies to get the most up-to-date information on the incentives that are available.