Investment Tax Credit (ITC)
ITCs are designed to promote a mix of renewable energy technologies, with a strong emphasis on solar energy and related storage solutions. As of 2024, the breakdown is as follows:
- 30% Allowable Aggregate Costs Bonus
- 10% Energy Community Bonus
- 10% Domestic Content Bonus
- 10% Low Income Community Bonus
In 2024 the ITC currently allows both Homeowners and Businesses to claim 30% of their solar system aggregate costs as a tax credit. There is no cap to the value you can claim for your credit and there is no income limits for claiming the credit.
Domestic Content bonus credit applies to renewable energy facilities
that are constructed with a minimum percentage of produced and manufactured components from the United States, and provides a 10% additional addon.
The energy Community Tax Credit Bonus applies an additional 10% for projects, facilities, and technologies located in energy communities.
The low income community bonus credit program increases the amount of ITC by 10% for clean energy investments in low-income communities, on indian land, as part of affordable housing developments.