Editor Note: As of Aug. 16, 2022, the solar tax credit (or Investment Tax Credit, ITC) has increased to 30%. To read more and get details on further incentive updates, see our Guide to the 30% Solar Tax Credit.
HERE’S WHAT YOU NEED TO KNOW
WHAT IS THE SOLAR TAX CREDIT?
The Federal Solar Tax Credit, officially known as the Investment Tax Credit (ITC), is a great opportunity for Oregon homeowners and businesses who want to go solar.
HOW MUCH IS THE CREDIT?
By installing solar, homeowners and businesses can get a credit worth 26 percent of the total cost of their solar project. This total cost includes parts and labor, and there is no limit to the total tax deduction amount.
This credit is a dollar-for-dollar reduction of your federal income taxes. If your potential tax credit is larger than your tax liability, you can carry over your tax credits to following years.
HOW LONG WILL THIS LAST?
Unfortunately, the credit is set to decrease. As the chart above shows, the ITC will decrease from 26 percent to 22 percent in 2021, and will then be eliminated for residential installs in 2022. There will be a permanent 10 percent tax credit for commercial installs after 2021.
IS THIS THE ONLY OREGON SOLAR INCENTIVE?
There are currently four potential incentive programs you can qualify for in Oregon. To learn more about all the Oregon incentives available to you check out our 2020 guide to Oregon solar incentives.
Act fast before this huge incentive is eliminated. Contact Green Ridge Solar today!
Do you qualify for other solar incentives? Find out by clicking here.