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Federal Solar Tax Credit

The 30% federal tax credit is now called the Residential Clean Energy Credit.

For business
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What is the federal solar tax credit?

The Residential Clean Energy Credit is a federal solar tax credit for homeowners who purchase solar panels. The tax credit returns 30% of your solar system cost after you file your taxes. 

The federal tax credit and the decreasing cost of solar panels have made purchasing a home solar system much more attainable in the past decade. This process is set to continue over the coming years. Congress renewed the Residential Clean Energy Credit in 2022 as part of the Inflation Reduction Act, guaranteeing its current rate through 2032. It will drop to 26% in 2033 and 22% in 2034, expiring in 2035 unless Congress renews it.