Federal Tax Credit
Solar power is a famously great investment and the federal solar investment tax credit (ITC) can make it irresistible. But the time to redeem ITC at its maximum value is running out, so homeowners should take advantage of it while they can.
The ITC provides qualified homeowners with a tax credit for the cost of their solar system.1 This makes solar’s clean-energy approach much more economical.
Throughout 2022, the ITC for residential properties will remain equal to 26 percent of the amount invested in an eligible solar property, as long as the construction begins before 2023.
But homeowners need to move fast if they want to save money with the ITC. Starting in 2023, the tax credit will “step down” to 22 percent. In 2024, it will completely phase out for homeowners.
The ITC helps homeowners because it’s a dollar-for-dollar tax credit that can be applied to the income taxes you owe. For example, if you purchase your solar system for $20,000, you could receive a tax credit of $5,200. And if you don’t have a high enough tax bill to claim the entire credit in one year, you may be able to roll over the remaining amount to future years – as long as the tax credit is still in effect.
1Tax credits subject to change. SunPower does not warrant, guarantee or otherwise advise its partners or customers about specific tax outcomes. Consult your tax advisor regarding the solar tax credit and how it applies to your specific circumstances.