Solar News & Information
Inflation Reduction Act Boosts Solar Tax Credit
August 17, 2022
The Inflation Reduction Act of 2022 now signed into law contains significant tax and other governmental incentives for the energy industry, in particular the renewable energy industry including solar power and wind energy.
The federal Investment Tax Credit (ITC) has been increased to its original peak of 30% as a part of this wide ranging clean energy advancement.
Solar Tax Credit in Massachusetts
Any Massachusetts homeowner investing in a rooftop solar energy system is eligible for the federal ITC. Once the solar system is installed, you are entitled to a nonrefundable credit off your federal income taxes, equal to 30 percent of eligible expenses. There’s no dollar limit on those expenses; you’re entitled to that 30 percent tax break no matter what you spend. However, we will advise you on the optimum system size and design to maximize your return on the investment.
The U.S. Department of Energy outlines the covered expenses which continue under this new law. They are summarized as follows:
- Solar photovoltaic (PV) panels.
- Contractor labor for onsite preparation, assembly, or original installation.
- Permitting fees, inspection costs, and developer fees.
- All equipment needed to get the solar system running, including wiring, inverters, and mounting equipment.
- Storage batteries with a capacity of 3kW or more. (You can claim the tax credit for these even if you buy and install them a year or more after you install the solar system.)
- Sales taxes on eligible expenses.
Massachusetts Solar Incentives Continue
The Solar MAssachusetts Renewable Target (SMART) program will continue to pay homeowners for the power that you generate. By combining SMART and federal incentives, Massachusetts remains one of the best places in the country to add a solar energy to your home.
You can learn more about overall incentives by visiting our Residential Solar Incentives page.
We also encourage you to download our free and simple brochure explaining how the SMART program works for you.
FREE Download
Simply tell us your email address to send the download of a free guide explaining the SMART program in simple terms.
Contact Us with questions or to see exactly how solar power will work for YOUR home, saving you thousands. It’s a free evaluation with absolutely no obligation.
