A tax credit gives you a reduction in your income tax. The federal residential solar energy credit is one of the tax credits that you can claim and is available now through the end of 2032. You can claim your tax credits for a percentage of your solar photovoltaic (PV) panels, PV cells, contractor labor for installation, permit fees, inspection costs, etc. If you don’t have enough tax liability to match the tax credit amount in the year of installation, the remaining credit rolls over to the next tax year, so it is not a use it or lose it situation.
The best part about solar tax credits is that they have no dollar limit! If you pay $10,000 or more than $100,000, you are eligible for a 30% tax break. You’ll be doing your part to save the environment while you are saving on taxes.