Also known as the investment tax credit (ITC), this credit allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes.

Although this credit was at risk of being phased out, the 30% federal tax credit has been extended through 2032. It allows homeowners to claim 30% of the total cost of their solar energy system as a tax credit. Eligible expenses include labor, site preparation (like roof upgrades), installation, and related services.

As long as you own your solar energy system, you are eligible for the solar tax credit. If you don’t have enough tax liability for the claimed year, you can simply “roll over” the remaining credits into the following years for as long as the tax credit is in effect.

You claim the ITC when you file your federal tax return. Let your CPA know that you’ve gone solar and they will assist you with your credit.