🏛️ Federal ITC Calculator

Solar Tax Credit Calculator

Calculate your 30% federal Investment Tax Credit, state bonus incentives, and the net out-of-pocket cost of going solar.

⚠️ Tax Disclaimer: This tool provides estimates for informational purposes only. Tax situations vary. Consult a qualified tax professional or CPA before filing. The ITC applies to your federal tax liability — not a refund if your liability is zero.
Enter Your Solar Project Details
Full installed cost from installer quote
Also eligible for the 30% ITC (if installed with solar)
From your recent tax return (line 24)
Check your state's solar incentive page
Reduces ITC basis if it reduces purchase price
ITC rate may change after 2032
Your Solar Tax Credit Summary
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Federal ITC (30%)
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State Credit
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Total Credits
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Net Out-of-Pocket
ITC Eligibility Checklist
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New installation only

The 30% ITC applies to new solar panels and battery systems installed on a U.S. property. Previously installed systems do not qualify.

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Primary or secondary residence

Qualifying properties include your main home, a vacation home, or even off-grid solar on land you own. Pure rental properties use a different depreciation path (IRS Form 3468).

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You own the system — not leased

If you lease solar or use a PPA (Power Purchase Agreement), the tax credit goes to the leasing company, not you. To claim ITC you must own the system outright or via a solar loan.

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Batteries must be charged by solar (≥ 2026)

Standalone battery storage added after 2022 is ITC-eligible at 30% regardless of charging source. Batteries installed before 2023 must be charged exclusively by solar to qualify.

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You must have federal tax liability

The ITC reduces dollar-for-dollar what you owe in federal income taxes. If your tax liability is $0, you cannot use the credit that year — but it carries forward to future years when you do owe taxes.

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File IRS Form 5695

Claim the credit on IRS Form 5695 (Residential Energy Credits) and attach to your Form 1040. Your solar installer should provide documentation of total system cost.

Notable State Solar Incentives (2026)

Many states stack additional credits and rebates on top of the federal ITC. The table below highlights some of the most valuable programs — check your state's energy office for current details.

State Program Benefit
New YorkNY-Sun / State Tax Credit25% state credit (up to $5,000) + NYSERDA rebates
MassachusettsSMART Program + State Credit15% state credit (up to $1,000) + production payments
MarylandCleanEnergy Grant$1,000 residential grant + property tax exemption
New JerseySuSI ProgramSuccessor solar incentive + 4% sales tax exemption
South CarolinaSC Tax Credit25% state credit (up to $3,500)
ArizonaAZ Residential Credit25% state credit (up to $1,000) + sales/property tax exempt
ConnecticutPACT ProgramBill credits + zero interest PACE financing
CaliforniaSGIP Battery Rebate$150–$1,000/kWh for qualifying battery storage
TexasNo state income taxNo state income tax (ITC less relevant) + property tax exemption
ColoradoRENU Loan / XCEL Rebate$500–$1,500 utility rebates + low-interest state loans
Always verify: State programs change frequently. Visit your state's energy office or the DSIRE database for the most current incentive information.
Federal ITC FAQ
How long is the 30% ITC available?
Under the Inflation Reduction Act, the 30% Residential Clean Energy Credit is available through 2032. It steps down to 26% in 2033 and 22% in 2034, then expires for residential systems in 2035 unless Congress extends it.
Is the ITC a rebate or a tax credit?
It is a non-refundable tax credit — it reduces your federal income tax bill dollar-for-dollar. If you owe $10,000 in taxes and have an $8,400 ITC, you pay only $1,600. It is NOT a refund check mailed to you if you owe nothing.
What costs are included in the ITC basis?
Labor costs, solar panels, inverters, racking and mounting, wiring, battery storage (if charged by solar), permit fees, and inspection costs all count toward the ITC basis. Roof repairs done separately from the solar installation typically do not qualify.
Can I claim the ITC if I finance with a solar loan?
Yes. As long as you own the system (not a lease/PPA), financing method doesn't matter. The full system cost is your ITC basis — not just the down payment. Many solar loans are structured to let you pay down the principal with your ITC refund.
Do utility rebates reduce my federal ITC?
It depends. Rebates from your state government do NOT reduce your ITC basis. But rebates paid by your utility company ARE treated as a reduction in your system's purchase price, which reduces your ITC calculation. Our calculator handles this automatically.
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