Residential Financial Incentives
RESIDENTIAL SOLAR FEDERAL INVESTMENT TAX CREDIT
Any purchase of a solar power system before December 31, 2032 results in a 30% federal tax credit making The Investment Tax Credit (ITC) the most important financial incentive for potential solar energy customers, and one of the most lucrative tax incentives across all categories. The ITC for commercial businesses steps down to 26% in 2033 and permanently to 22% in 2034.
The Investment Tax Credit (ITC)
The Investment Tax Credit (ITC) is based upon the amount of investment in solar property and can be carried back 1 year and forward 20 years. It is a dollar for dollar reduction in income taxes for those claiming the credit. Any structural roof work or tree trimming that prevents the system from being shaded can also be included in your overall credit. Check with your accountant and reference IRS form 5696 and Section 25 of the Internal Revenue Code.
Alabama Residential Solar Financial Incentives
Although Alabama does have state sponsored rebates and incentives, they are included in the Investment Tax Credit shown above.