The Complete Guide to the Federal Solar Tax Credit (ITC)
· 6 min read
The federal Investment Tax Credit (ITC) was one of the most important financial incentives for going solar. Here's everything you need to know.
ITC Status: Expired
The federal solar tax credit was eliminated on January 1, 2026 per the Inflation Reduction Act phase-out schedule. No federal tax credit is available for 2026 installations.
What's Covered
The ITC covers solar panels, inverters, mounting equipment, wiring, battery storage (if installed with solar), and labor costs for installation.
How to Claim
You claim the ITC when you file your federal taxes using Form 5695. The credit reduces your tax liability dollar for dollar.