It’s official! The 30% Solar Federal Tax Credit is back!
BIG NEWS FOR SOLAR! The $370 billion Inflation Reduction Act of 2022 just signed by the President immediately increases the current 26% solar federal tax credit to 30% of the cost of installed solar equipment. This applies to residential and small commercial projects placed in service in 2022 through 2032 —an extension without phase-down for a steadfast 10 years! The law calls for a step down much later on to 26% in 2033 and 22% in 2034.
Keep in mind also that in New York State, there continues to be a residential state tax credit of 25% of cost, capped at $5,000, on top of any federal incentives.
The new law also includes up to $30 billion in incentives for U.S. companies to manufacture solar panels, wind turbines, and batteries. The solar energy industry has been clamoring “made in America” incentives for years.
This sweeping legislation addresses energy security and climate change by including renewable energy and climate measures, including incentives for solar storage and electric vehicles, all of which are expected to cut greenhouse gas emissions by 40% by 2030.
