You can normally expect to be eligible for the federal solar tax credit program, which was extended through 2034 by the Inflation Reduction Act of 2022. If you install a qualifying system, you can receive a federal investment tax credit (FITC) that allows up to to 30 percent of a renewable energy system’s cost to be recouped as a credit on your federal income tax.
The credit amount will be available to you when you file your tax return for the year the installation is completed. If you cannot use the full tax credit that year, it can carry forward to subsequent years. We recommend contacting your tax professional to discuss how the FITC can impact your projected tax situation for a specific year.
As funding allows, the OSSRP offers Oregon homeowners a rebate of up to $5,000 for installing a solar electric system and up to $2,500 for installing an energy storage system. The systems we install are normally eligible for this rebate. Note that the rebate is paid to Energy Designs, and we simply deduct this amount from the cost of your project. You do not have to pay the full cost of the system up front and then wait for the rebate.
If you are considering a solar project for a business, an accelerated depreciation schedule (MACRS) may be applied to your solar electric system purchase. Energy Design will work with your accountant to articulate the distribution of MACRS and the impact it will have on your tax situation.