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Solar Investment Tax Credit (ITC)

(from seia.org)


The solar Investment Tax Credit (ITC) is one of the most important federal policy mechanisms to support the growth of solar energy in the United States. Since the ITC was enacted in 2006, the U.S. solar industry has grown by more than 10,000% - creating hundreds of thousands of jobs and investing billions of dollars in the U.S. economy in the process.


SEIA has successfully advocated for multiple extensions of this critical tax credit, including the most recent delay of the credit phasedown in December 2020. SEIA also supports legislation that would extend benefits of the Investment Tax Credit to energy storage. Click here to learn more. Quick facts

  • The ITC is a 26 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties. The Section 48 commercial credit can be applied to both customer-sited commercial solar systems and large-scale utility solar farms.

  • The residential and commercial solar ITC has helped the U.S. solar industry grow by more than 10,000% percent since it was implemented in 2006, with an average annual growth of 50% over the last decade alone.

  • Congress passed a two-year delay of the ITC phasedown in 2020:




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