BREAKING NEWS! The American government has come together to pass the Inflation Reduction Act of 2022 (IRA). This is fantastic news for those installing a new solar system because they will now be eligible for a 30% tax credit.
The Federal Solar Tax Credit that is also known as the Solar Investment Tax Credit or ITC is a 30% tax credit incentive for a newly installed solar system.
By installing a solar photovoltaic system, you will be entitled to a federal solar tax credit that can be claimed on federal income taxes for a percentage of the cost that came with installing a new solar system. This will help Americans get solar on their roofs and will help millions more families unlock an additional savings on their electricity bills over the life of the system.
The solar ITC was first introduced back in 2006, and has been a huge success since then: according to the Solar Energy Industries Association, it's spurred average annual growth of more than 50 % for the solar industry and boosted the area by more than 10,000 % since its inception. Indeed, the solar ITC is the primary motivator behind the development of solar - it goes without saying that, without this extension, we would see a decline in the growth of solar for the foreseeable future.
The statistic mentioned above speak for themselves - the solar ITC has been responsible for huge growth in the solar sector.
