Solar Tax Credits and Incentives

Solar incentives and tax credits are available and offered at the federal, state and local level. However, these offerings vary based on your location and whether you are a homeowner, business, government entity, or non-profit.

*Consult with your tax professional to learn more about how you can take advantage of tax credits and incentives.

There is currently a 30% federal tax credit claimed against the tax liability of residential (Section 25D) and commercial and utility (Section 48) investors in solar energy property as defined with the Inflation Reduction Act.

NOTE: Additional tax credits may be available as identified in the SEIA Solar Energy and Energy Storage Provisions Summary for Investment Tax Credits (ITC) and/or Production Tax Credits (PTC)
U.S. Department of Agriculture Rural Energy for America Program (REAP) is designed to provide guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.
Modified Accelerated Cost Recovery System (MACRS Depreciation)
*Consult with a tax professional on the completion of the proper federal solar energy tax forms.
For more information, visit Energy.Gov or review U.S. Department of Energy Guide to the Federal Investment Tax Credit for Commercial Solar Photovoltaics.

Inflation Reduction Act Federal Tax Credit (30% of gross cost at installation – includes batteries with at least 3 kilowatt-hours (kWh) of capacity)

NOTE: Additional tax credits may be available as identified in the SEIA Solar Energy and Energy Storage Provisions Summary for Investment Tax Credits (ITC) and/or Production Tax Credits (PTC)
U.S. Department of Agriculture Rural Energy for America Program (REAP) for agricultural producers and rural small businesses
Modified Accelerated Cost Recovery System (MACRS Depreciation)
No Iowa sales tax is collected for the purchase of a solar array
During the first five years, a solar array in Iowa will not increase your property tax liability

Inflation Reduction Act Federal Tax Credit (30% of gross cost at installation – includes batteries with at least 3 kilowatt-hours (kWh) of capacity)

NOTE: Additional tax credits may be available as identified in the SEIA Solar Energy and Energy Storage Provisions Summary for Investment Tax Credits (ITC) and/or Production Tax Credits (PTC)
U.S. Department of Agriculture Rural Energy for America Program (REAP) for agricultural producers and rural small businesses
Modified Accelerated Cost Recovery System (MACRS Depreciation)
Solar Renewable Energy Credits (SRECS) Adjustable Block Program
*(Eligibility in the Adjustable Block Program requires working with an approved Solar vendor. Eagle Point Solar has completed the vetting process and our Solar Energy Consultants are certified by the Adjustable Block Program’s administration. Eagle Point Solar is able to facilitate your ABP payout and professionally install your array system.)
A solar array in Illinois will not increase your property tax liability
Illinois Power Agency

Inflation Reduction Act Federal Tax Credit (30% of gross cost at installation – includes batteries with at least 3 kilowatt-hours (kWh) of capacity)

NOTE: Additional tax credits may be available as identified in the SEIA Solar Energy and Energy Storage Provisions Summary for Investment Tax Credits (ITC) and/or Production Tax Credits (PTC)
Focus on Energy – Residential Incentive – Max. $500* (Customers in specific rural zip codes can receive an additional $500 per system.)
Focus on Energy – Business Incentive – Max. $50,000 Tiered (Incentive amount is based on a 6-level tiered system size kW DC program)*
U.S. Department of Agriculture Rural Energy for America Program (REAP) for agricultural producers and rural small businesses
Modified Accelerated Cost Recovery System (MACRS Depreciation)
No Wisconsin sales tax is collected for the purchase of a solar array
A solar array in Wisconsin will not increase your property tax liability. *NOTE: Work with a Focus on Energy Trade Ally to ensure the system installed qualifies for program incentives.

Stand-alone energy storage also becomes eligible for the Inflation Reduction Act Federal Tax Credit for batteries with at least 3 kilowatt-hours (kWh) of capacity. The stand-alone battery credit only applies to expenditures made after December 31, 2022. Stand-alone storage is eligible only for the Investment Tax Credit (ITC) and not eligible for the Production Tax Credit (PTC).

NOTE: Additional tax credits may be available as identified in the SEIA Solar Energy and Energy Storage Provisions Summary.

*Consult with your tax professional to learn more about how you can take advantage of tax credits and incentives.