Thanks to the landmark Investment Tax Credit (ITC), you can cut the cost of your solar PV system by 30 percent through this credit on your federal tax liability. Eligibility is simple. The solar tax credit applies only when systems are purchased outright with cash or with a solar loan and must have enough income for the tax credit to be relevant. For those who do not have any federal tax liability, this credit does not apply to you.
At the end of 2019, the federal solar tax credit is decreasing from 30 percent to 26 percent. In order to take advantage of the full 30% rate, you must install a solar energy system before January 1st, 2020. Here are the scheduled changes you can expect as you plan: