Explaining the Federal Solar Tax Credit for 2024

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The Federal Solar Tax Credit

What is the Federal Solar Tax Credit?

The federal solar tax credit, also known as the investment tax credit (ITC), allows you to claim 30% of the cost of your solar energy system as a credit to your federal tax bill. If your solar panel system costs $10,000 to install, you’ll receive a $3,000 credit, reducing your tax bill directly.

How Much Can You Save?

On average, EnergySage Marketplace shoppers save an additional $9,716 on their solar costs when they claim the ITC. This calculation is based on an average system size of around 11 kW, priced at $32,386 before incentives.

Future of the Tax Credit

The tax credit will remain at 30% until 2033, when it is set to decrease to 26%.

Extension of the ITC

The ITC, originally set to expire in 2022, has been extended until 2034 as part of the Inflation Reduction Act. This means that homeowners can still benefit from the solar investment tax credit in some capacity through 2034. The year you install your system determines the amount of your solar costs eligible for the credit.

Read More of this Story at www.energysage.com – 2024-06-21 07:00:00

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