Rebates & Incentives

Great news for anyone planning or undertaking a new solar project.

Biden ITC

The new Solar Investment Tax Credit, part of the Inflation Reduction Act now allows U.S. taxpayers to claim 30% of the total installed cost of a new residential solar PV system as a credit on their federal income taxes. This credit includes the purchase price of all the equipment, and it includes shipping the equipment, plus sales taxes.

Furthermore, if you are doing the installation yourself you can include the price and sales tax of rental tools and purchased tools too. Also, if you hire a solar installation company, you can claim all the labor and permitting costs plus sales tax paid on these as well.

The Inflation Reduction Act is the source of these credits, signed into law by President Joe on August 16, 2022. While the law addressed everything from prescription drug prices to taxes on corporations, the solar ITC is a huge investment in our fight against catastrophic climate change.

Here’s some details on claiming the solar ITC but remember to consult your tax advisor because everyone has unique circumstances.

  • You as a taxpayer must own the solar electric system, you cannot be leasing it.
  • The system must be installed in the USA.
  • To qualify it must be installed on your primary residence or a vacation or part time home you own.
  • If you own a rental property it does not qualify.

This 30% solar tax credit supersedes all the older tax credits. If you have installed a grid tied or hybrid system during 2022 the credit applies even if it was installed before the time it was signed into law. If you’re going off grid the effective installation date must be after December 31, 2022.

Different types of solar systems have different qualifying dates.

  • Off grid systems installed after December 31, 2022, with a minimum storage capacity of 3kWh.
  • Grid-tied with no battery storage installed after December 31, 2021.
  • Hybrid systems (grid-tied with batteries) installed after December 31, 2022. However, the solar and batteries must have been installed at the same time. Again, the battery storage must have a minimum of 3kWh of storage.
  • Grid-Tied systems installed before December 31, 2021, which add batteries during 2022 or later is tricky, we advise consulting your Tax Consultant before you try to claim a credit.
  • Electric Vehicles, if they was assembled in North America, can get a $7500 tax credit. The Inflation Reduction Act also mandates the materials used in the battery components must be sourced in North America as well. The National Highway Traffic Safety Administration offers a VIN lookup website  so you can see the plant that manufactured your new car. Finally make the dealership confirm the EV/PHEV you plan to purchase qualifies for the full $7,500 tax credit.
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