You may have seen discussion of the solar tax credit program in the news recently. What is this program and how can it affect you? The program, which has been in effect for over 15 years, allows homeowners to receive a tax credit for the installation of a solar photovoltaic system in the US, which can be used to generate electricity for a home. A tax credit is a reduction in the amount of income tax you would owe in a given year. For your solar tax credit, this would apply to the year that installation on your solar panels is completed allowing them to begin generating energy for your home, but can potentially be carried over to the following year if you owe less than the total solar tax credit you are eligible for.

Following an extension to the program passed by Congress in 2020, homeowners currently can receive a 26% tax credit on the cost of an installation that was completed between 2020 and 2022. This percentage is set to decrease to 22% starting in 2023 and expire starting in 2024.

However, Congress is currently debating another extension to this program as part of the Inflation Reduction Act of 2022. This could potentially see the tax credit extended beyond 2023 and even result in an increase in the percentage of the cost that can be applied as a tax credit to your income tax return. If this increased percentage is passed, it could even apply retroactively to solar installations completed in 2022.

For more information on whether the solar tax credit applies to you and other potential incentives you might qualify for, contact us at and a partner will get back to you. We can help you figure out what costs from your installation can be included so you get the maximum solar tax credit incentive that you could be eligible for.