The Investment Tax Credit (ITC), also commonly referred to as the federal tax credit provides a 30% tax credit for projects installed through the end of 2025.
Previously lasting through 2034, with the July 4th passing of the One Big Beautiful Bill Act, the tax credit is now only available through December 31, 2025. In 2026 and beyond there will be no federal solar tax credit.
This incentive differs from other incentives in that it works in a block grant format. The incentive rewards early movers in installing solar by rewarding them with more money by the wattage of their solar system.
State Tax Credit:
The state tax credit (which can be claimed in addition to the federal tax credit) provides an additional 25% tax credit for New York state taxes. However this incentive caps at $5,000.
For both the Federal and State solar tax credits, if an individual’s tax credit exceeds that of their tax liability, then the tax credits are eligible to be carried over for up to 5 years.
Solar batteries can be eligible for the ITC under certain conditions. The same 30% tax credit can be applied to a storage system provided it is exclusively charged from a renewable source of energy. This means a storage system paired with a solar system is eligible for the tax credit!
The Affordable Solar Program gives the opportunity for underserved households and communities qualify for solar. To calculate how to qualify for this program, NYSERDA measures gross household income combined with the total household occupancy.
First NY Federal Credit Union:
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