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About the Federal Investment Tax Credit
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The federal solar Investment Tax Credit (ITC) is one of the most important economic development tools to support the growth of solar energy in the United States. The ITC has been extended to 2021.
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Current ITC Rates
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For either type of ITC credit below, the tax credit is generated when the system is placed in service
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Residential: Solar Electric and Water Heating
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Law effective before 1/1/2017
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Placed in service through 12/31/2016 – 30%
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Law effective after 12/31/2016
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Placed in service before 12/31/2019 – 30%
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Placed in service 1/1/20 through 12/31/2020 – 26%
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Placed in service 1/1/21 through 12/31/2021 – 22%
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Commercial: Solar Electric and Water Heating
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Commence construction before 12/31/2019 – 30%
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Commence construction 1/1/20 through 12/31/2020 – 26%
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Commence Construction 1/1/21 through 12/31/2021 – 22%
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Must be Placed in service by 12/31/23 to claim credits above
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