The ITC is a federal tax credit for a percentage of the cost of installing a solar photovoltaic (PV) system. It's designed to incentivize residential and commercial solar energy use.

Homeowners, businesses, and certain non-profit organizations installing new solar PV systems are eligible for the ITC.

As of the Inflation Reduction Act, the ITC is worth 30% of the cost of installing a solar PV system through 2032, decreasing to 26% in 2033 and 22% in 2034.

No, the residential solar ITC is available only for systems installed on properties you own and live in.

Yes, starting in 2023, battery storage technology with a capacity of at least 3 kilowatt-hours is eligible for the ITC.

Yes, if the tax credit exceeds your tax liability, the remaining balance can be carried forward to future tax years.

You can claim the credit by filing IRS Form 5695 with your federal tax return.

No, the ITC is nonrefundable. It can only be used to offset your tax liability.

Yes, under the IRA, solar tax credits can now be sold or transferred to unrelated parties, allowing those without sufficient tax liability to monetize their credits.

Documentation typically includes proof of installation, costs involved, and IRS Form 5695. It's advisable to keep detailed records of all transactions and installations.

Eligible systems include solar PV panels, solar water heating systems, and starting in 2023, battery storage technology.

Yes, you can claim the ITC for solar systems installed on a second home, as long as it's not a rental property.

Yes, the ITC applies to the total cost of the solar system, including installation.

If you sell your property, the ITC cannot be transferred to the new owner. The credit applies only to the person who installed the solar system.

No, there are no income limits for claiming the solar ITC.

No, the ITC can only be claimed by the owner of the solar system. If you lease, the lessor claims the credit.

The current solar ITC is available for systems installed through 2034, with the credit percentage reducing in 2033 and 2034.

Yes, businesses can claim the ITC for each eligible solar installation.

The Solar ITC is a federal credit and doesn't directly impact state taxes, though some states have their own solar incentives.

For installations spanning multiple years, the ITC can be claimed based on the portion of the solar system that is placed in service during the tax year.