The Future of the Solar Income Tax Credit (ITC)
The federal Residential Clean Energy Credit, commonly known as the Solar Investment Tax Credit (ITC), has been instrumental in promoting solar energy adoption across the United States. This credit allows homeowners to deduct 30% of their solar installation costs from their federal taxes, significantly reducing the financial burden of transitioning to renewable energy.
Current Status of the ITC
As of the end of 2024, the ITC remains at 30% for residential solar installations. This rate is set to continue through 2032, after which it will decrease to 26% in 2033 and 22% in 2034, eventually phasing out for residential properties by 2035. Feel free to learn more about this federal ITC by going to Energy.gov or by booking an appointment with one of our consultants here.
Potential Changes Under the Incoming Administration
With the recent election of President Donald Trump, there is growing speculation about potential shifts in energy policy, including the future of the federal Solar Investment Tax Credit (ITC). While the administration has emphasized expanding energy infrastructure to meet the demands of high-growth sectors like artificial intelligence and cryptocurrency, it remains unclear how this focus will impact renewable energy incentives. President Trump has historically championed traditional energy sources like coal and oil but has also acknowledged the economic benefits of renewables. His emphasis on energy independence and innovation could signal a pragmatic approach that leaves room for solar energy to thrive, particularly given its role in meeting rising electricity demands. Some industry experts believe these economic advantages might encourage the administration to maintain or even expand renewable energy incentives.
While the future of the ITC under the new administration is uncertain, the current 30% credit presents a compelling opportunity for homeowners to invest in solar energy. By acting now, you can secure significant tax benefits, reduce your energy costs, and contribute to a sustainable future.
At True Solar Consulting, we are committed to guiding you through the process of transitioning to solar energy. Our team of experts is ready to help you navigate the available incentives and help navigate you through your solar needs and questions. Contact us today to schedule a consultation and take the first step toward energy independence.