The federal solar energy credit is a tax credit that can be claimed on federal income taxes for a percentage of the cost of a solar photovoltaic (PV) system. This credit is available for residential, commercial, and utility investors in solar energy property.
In December of 2020, the phasedown of the Solar Investment tax credit was extended. The Biden Administration has indicated plans to include an additional extension of the tax credit in future legislation, however there is no guarantee that this will be approved and passed by Congress. The tax credit is equal to a percentage of the cost basis of installing eligible solar energy property.
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