Solar Citi

Investment Tax Credit (ITC)

  • Tax Benefits

The Solar Investment Tax Credit (ITC) is a federal incentive that can significantly reduce the cost of installing solar panels.

Here’s how it works, explained simply for your clients:

What is it?

The Solar ITC lets you deduct a portion of your solar installation costs directly from your federal taxes. This means you’ll pay less on your tax bill by going solar.

How much can you save?

For 2024, homeowners can claim a tax credit equal to 30% of their solar system's total cost. For example, if your solar setup costs $20,000, you can get a $6,000 tax credit.

Why it’s valuable

Since this is a tax credit, not just a deduction, it directly reduces your tax owed rather than just lowering your taxable income. So, it’s a dollar-for-dollar reduction on your tax bill.

How to qualify?

To claim the ITC, you need to own the solar system (not lease it) and have it installed at your primary or secondary residence within the qualifying period. You simply claim the credit on your federal tax return for the year your system was installed. This tax credit is a big incentive for going solar, making renewable energy more affordable and speeding up your return on investment! Keep in mind, the ITC is currently set to step down after 2032, so now is a great time to make the switch and lock in this savings.

  • Extra Savings

Act Now to Save More

Savings Beyond the ITC

Beyond the ITC, many states offer additional incentives like rebates, property tax exemptions, and net metering (where excess energy generated is credited back to the homeowner). Combining the ITC with local incentives can dramatically lower the overall cost of going solar.

Why Timing is Important?

The ITC is set to phase out after 2035 unless renewed, meaning the best way to maximize savings is to act while the full 30% credit is available.

10% bonus ITC for commercial projects using USA products

When undertaking commercial solar projects, businesses can claim an additional 10% Investment Tax Credit (ITC) on top of the existing 30% credit by utilizing American-made solar panels. This significant incentive not only increases the overall savings on your solar investment but also promotes domestic manufacturing and supports local jobs. By choosing to work with Solar Citi, you can benefit from high-quality, locally sourced panels that meet these criteria, enhancing both your financial returns and your commitment to sustainable practices. This added tax benefit makes transitioning to solar energy an even more attractive option for businesses looking to reduce operational costs while investing in a greener future.

Depreciation

In addition to the Investment Tax Credit (ITC), businesses undertaking commercial solar projects can benefit from the ability to depreciate their solar system over time, further enhancing their financial savings. This depreciation allows businesses to recover a portion of their investment through tax deductions, significantly improving the overall return on investment. However, it’s essential to consult with your CPA to fully understand how these benefits apply to your specific situation and to optimize your tax strategy effectively. At Solar Citi, we’re committed to helping you navigate these opportunities to make the most of your solar investment.