The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 30% percent of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value. Thanks to the ITC, the average Massachusetts Solar customer saved thousands of dollars on the cost of going solar.
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As long as you own your solar energy system, you are eligible for the solar investment tax credit. Even if you don’t have enough tax liability to claim the entire credit in one year, you can “roll over” the remaining credits into future years for as long as the tax credit is in effect.
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