The Inflation Reduction Act of 2022, signed into law August 16, 2022, brought good news for solar customers. One of the primary focuses of this legislation is on strengthening the US green energy market. The federal government is offering new higher incentives for renewable energy projects through the Solar Investment Tax Credit (ITC).
The ITC (Investment Tax Credit) for solar projects has been raised to 30%, as a base value.
The Inflation Reduction Act also rewards customers with an additional 10% tax credit for solar projects using US made materials. This Domestic Content Adder brings the total tax credit up to 40% of the project cost.
US SolarWorks’ systems qualify for these extra incentives. Our systems are built using the highest quality equipment on the market. US SolarWorks has had a focus on domestic products for many years, so our customers will be able to take full advantage of the newly updated ITC.
There is also an update to the incentives available to non-profit entities. Previously, the ITC could only be claimed as a tax credit, but the Inflation Reduction Act expanded the incentive structure, to allow non-profits to receive a rebate from the treasury in an amount equivalent to the ITC.
More information about the IRA Solar Incentives can be found here: PV Magazine Article