Federal Solar Tax Credit Extended through 2024

One of the single best reasons to not wait too long to install solar panels is the solar tax credit offered by the federal government. This tax credit is known as the Investment Tax Credit, or ITC.

There are other credits and tax benefits for solar to be found in certain states. And, agricultural solar installations, as well as rural businesses, can often get access to more money through the REAP Grant.

But the federal solar tax credit remains the single biggest pot of money related to solar installations.

Solar Tax Credit History

The ITC began in 2005. It applies to residences, commercial businesses, agricultural businesses, and utilities. There is no cap, meaning even a multi-million dollar solar installation can claim the same credit.

And to be clear, this is a tax credit, not a tax deduction. A deduction just lowers your taxable income. But a credit is a direct, dollar for dollar reduction of your tax bill. So a credit is way better than a deduction.

The ITC was originally meant to expire just two years after it began. But like many things in government, once it got started, it never stopped. The ITC has been renewed and updated multiple times. However, there was great uncerta