The federal government provides a 30% Investment Tax Credit (ITC) to those who install solar photovoltaic (PV) systems between 2022 and 2032. The ITC will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034.

More information here: Federal Solar Tax Credits for Businesses | Department of Energy

The ITC offers additional tax credits for projects that meet specified requirements:

Energy Community: 10%

Projects located in an “energy community,” which includes brownfield sites, census tracts where a coal mine closed after 1999 or a coal-fired power plant was retired after 2009, or areas where 25% of local tax revenues are related to the extraction, processing or storage of coal, oil, or natural gas at any time beginning in 2010.

More information here: Energy Community Tax Credit Bonus - Energy Communities

Low Income Community: 10%

Projects located in a qualified “low-income community,” which is defined as a census tract with a poverty rate of at least 20%, as well as a census tract where the median family income (MFI) is 80% or less of statewide MFI, or on “Indian land”, which is defined as land located within the boundaries of an Indian reservation or lands held by a tribe.

More information here: Low-Income Communities Bonus Credit Program | Department of Energy

Domestic Content: 10%

Projects that meet specified domestic content requirements which will be set by Treasury, including 100% steel/iron for manufactured products with a 40% requirement through 2024 followed by 45% in 2025, 50% in 2026, and 55% in 2027 and beyond.

More information here: Additional Guidance on Domestic Content Bonus Now Available | Department of Energy