Federal Solar Tax Credits for Businesses
Office of Energy Efficiency & Renewable Energy
There are two tax credits available for businesses and other entities like nonprofits and local and tribal governments that purchase solar energy systems.
- The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
- The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.
Learn more details from energy.gov .