Solar Tax Credits

Harness Solar Energy and Maximize Your Benefits with Solar Tax Credits

With the Inflation Reduction Act's new tax incentives, we are committed to guiding both businesses and non-profits in capitalizing on these benefits.

What Are Solar Panel Tax Credits?

Solar panel tax credits are incentives provided by the government to reduce the cost of installing solar panels. These credits can significantly lower your tax liability, making solar energy an even more attractive investment for businesses.

For Businesses and Commercial Entities

• Investment Tax Credit (ITC): Gain a 30% tax credit on the total investment in solar energy projects.
• Additional Incentives: Earn extra credits for projects in Low/Medium Income Areas, meeting Domestic Content Requirements, or sited in Community Energy Areas.
• Tax Credit Transferability: Newly introduced flexibility allows tax credits to be transferred between entities, ensuring maximum utilization.
• Retroactive Application: Apply tax credits retroactively for up to three years, optimizing tax benefits even if the entire credit is not utilized in the installation year.

For Non-Profit Organizations

• Direct Pay Mechanism: Directly rebate incentives to non-profits, bypassing the need for tax liability.
• Enhanced Credit Opportunities: Enjoy increased base tax credits, new bonus credits, and the extension of investment tax credits for 10 years.
• Inflation Reduction Act (IRA) Highlights:
  • Base Tax Investment Credit: 30% (increased from pre-IRA levels).
  • Additional Tax Credit (Adders): Up to 40% post-IRA for meeting specific criteria.
  • Elective Pay on 990 for non-profit 501c3 entities.

Special Incentives for EV Infrastructure

• EV Charging Tax Credits: Claim a 30% credit of the infrastructure cost or up to $100,000 per project for electric vehicle charging stations.

The solar tax credit landscape is dynamic, with potential updates from the Treasury Department. We recommend consulting with a tax professional for the most accurate and current information.

ESA is dedicated to providing top-tier solar solutions and guiding you through maximizing your investments with solar tax credits.

Contact us today to learn how these incentives can benefit your business or non-profit organization.