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Tax Credits for Solar System Purchase

Solar consumers are eligible for federal tax incentives for the purchase and installation of eligible solar systems, including both solar photovoltaics (PV) and solar hot water (solar thermal) systems, as well as other renewable energy investments.

The following information regarding taxes, tax credits and depreciation is meant to make the reader aware of these benefits, risks and potential expenses, and help avoid claims by aggressive salespeople. It is not tax advice. Please seek professional advice from a qualified tax advisor to check the applicability and eligibility before claiming any tax benefits or exemptions.

Solar tax credits were enacted in 2008 as part of the Emergency Economic Stabilization Act, which included $18 billion in incentives for clean and renewable energy technologies, as well as for energy efficiency improvements. The 2008 legislation extended the solar investment tax credit (ITC) through December 31, 2016 and made other modifications to the tax credits. The solar ITC offers:

Additional Solar Tax Credit Information Resources