The Solar Investment Tax Credit (ITC) allows you to deduct 30% of the cost of solar electric or solar water heating installations from your federal taxes. A 2015 legislative amendment extends the credit for both residential and commercial projects through the end of 2019, then gradually decreases to 26% in 2020 and 22% in 2021 before dropping permanently to 10% for commercial projects and 0% for residential projects.
Recently, the IRS modified the ITC to allow solar projects that begin construction by the end of 2019 to receive the full 30% credit. So, if you’re considering going solar, we recommend you make it a resolution for this year to do so.