Federal Solar Tax Credit Extended at 30% Through 2032

The federal solar Investment Tax Credit (ITC) remains at 30% for residential solar installations through 2032, thanks to the Inflation Reduction Act. This means homeowners who install solar panels can deduct 30% of the total system cost from their federal income taxes. The credit applies to equipment, installation labor, and battery storage when paired with solar. After 2032, the credit steps down to 26% in 2033 and 22% in 2034.