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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 5,000%. 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 more than 8,600% percent since it was implemented in 2006, with an average annual growth of 50% over the last decade alone.
  • Congress passed a multi-year extension of the ITC in 2015.