Understanding the Federal Solar Investment Tax Credit (ITC)
What is the Federal Solar Tax Credit?
The federal solar tax credit, also known as the Investment Tax Credit (ITC), allows you to deduct 30% of your solar installation costs from your federal taxes. This incentive remains at 30% through 2025, making it an ideal time to invest in solar.
What’s Covered?
- Solar panels and mounting equipment
- Inverters and wiring
- Battery storage systems
- Professional installation costs
- Permit fees and inspection costs
- Solar consultation fees
How to Claim Your Credit
- Install your solar system with Solar City STL
- Receive all necessary documentation
- File IRS Form 5695 with your tax return
- Deduct 30% of total system costs
Eligibility Requirements
- Own your home
- Install new solar equipment
- System must be installed by December 31, 2025, for current rates
The 30% tax credit rate is guaranteed through 2025. After 2025, the credit is scheduled to decrease, making 2025 an optimal time to invest in solar.
Calculate Your 2025 Tax Credit Today Contact Solar City STL for a free consultation and detailed savings analysis.