The solar Investment Tax Credit (ITC) is one of the most important federal policy mechanisms to support the deployment of solar energy in the United States. SEIA successfully advocated for a multi-year extension of the credit in 2008, which provided business certainty to project developers and investors. The ITC continues to drive growth in the industry and job creation across the country.
Tax policies related to renewable energy play a vital role in creating new high-wage American jobs, spurring economic growth, ensuring U.S. global competitiveness, lowering energy bills for consumers & businesses, and reducing pollution. The solar investment tax credit (ITC) reduces the tax liability for individuals or businesses that purchase qualifying solar energy technologies. As a stable, multi-year incentive, the ITC encourages private sector investment in solar manufacturing and solar project construction. The solar ITC is the cornerstone of continued growth of solar energy
in the United States.
In the U.S. tax code, the ITC is a 30 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties. Under current law, the ITC will remain in effect through December 31, 2016. It is incumbent on every member of the U.S. solar industry to be mindful of applicable laws and remain fully compliant with all statutory and regulatory requirements of the ITC and related programs.
For more information on the Section 48 credit, please review this factsheet on Cost Basis for the ITC and 1603 Applications.