Tax Policy
The U.S. has a long history of supporting energy infrastructure through the U.S. tax code. The market certainty provided by the long-term solar investment tax credit (ITC) has supported private investment in manufacturing and project construction, a vital part in meeting our nation's energy policy goals, driving cost-cutting innovation and job growth.
Solar Investment Tax Credit
The solar Investment Tax Credit (ITC) is one of the most important federal policy mechanisms to support the growth of solar energy in the United States. Since the ITC was enacted in 2006, the U.S. solar industry has grown by more than 10,000%. In 2015, SEIA successfully advocated for a multi-year extension of the credit, which has provided critical stability for businesses and investors.
Quick Facts about the ITC
- The ITC is a 30 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties.
- The residential and commercial solar ITC has helped the U.S. solar industry grow by a factor of more than 200x since it was implemented in 2006, with an average annual growth of 33% over the last decade alone.
- Congress passed a long-term extension of the ITC in in 2022 as part of the landmark Inflation Reduction Act, which also includes many other tax provisions and policies that support long-term solar growth.
Additional Reading
Commence Construction Guidance
Learn MoreSEIA Solar Tax Manual
Learn MoreDepreciation of Solar Energy Property
Learn MoreSolar Tax Exemptions
Learn MoreTax & Accounting Committee
SEIA's Tax & Accounting Committee discusses pressing tax issues on Capitol Hill and in the Administration. The group is comprised of leading tax attorneys and consultants in the country as well as our member companies’ tax experts.
Get InvolvedRelated News
Little-Known Federal Agency Could Upend Financing for Residential Solar Market
The expiration date for one of the most influential — albeit obscure — rules governing rooftop solar financing is fast approaching and will make it harder for Americans to switch to rooftop solar.
Solar and Storage Industry Makes Recommendations to U.S. Treasury Department on Implementation of the Inflation Reduction Act
WASHINGTON, D.C. — The Solar Energy Industries Association (SEIA) today filed responses to the U.S. Department of the Treasury's request for public comments on the clean energy tax provisions of the landmark Inflation Reduction Act (IRA).
The Inflation Reduction Act Is Law, but Implementation Will Determine How it Works for Decades to Come
The landmark Inflation Reduction Act (IRA) has changed the trajectory of the U.S. energy market, sparking a projected five-fold increase in the size of America’s $33 billion solar and storage industry over the next decade.