30% Federal Investment Tax Credit

What is a tax credit?

A tax credit is a dollar for dollar reduction in the amount of income tax you would otherwise owe. For example, claiming a $1,000 federal income tax credit would reduce the amount of taxes you owe by $1,000.

What is the 30% Federal Investment Tax Credit (ITC)?

The 30% Federal Investment Tax Credit (ITC or sometimes just FTC) pertains to all solar installations (including solar PV and solar hot water) completed from now through 2032. That means 30% of the total cost including labor, materials (racking, panels, inverters, batteries, etc), and preparation necessary for those installations is deducted from the following year’s taxes or spread out over up to 20 years of taxes.

For example, if your system installation price is $18,000, the 30% ITC would amount to $5,400 which effectively means your solar system would only cost $12,600 after you recoup those savings in taxes that you don’t have to pay.

How long will the 30% ITC last?

The credit remains effective through the year 2032.

Who can claim the ITC?

The credit can be claimed by residential, commercial, agricultural, institutional, or municipal installers of solar energy systems in the United States.

Can the ITC be applied to my roof?

Aurora Roofing & Solar recommends discussing this with your qualified financial consultant as there are differing opinions on this question. Our opinion is if the roof is being replaced for the purpose or as part of a new solar system installation then the answer is likely yes.