Federal ITC and MACRS Informational Resources

Federal Investment Tax Credit (updated 2022)

• 30% for systems placed in service by end of 2032
• 26% for systems placed in service during 2033
• 22% for systems placed in service during 2034
• 0% for systems placed in service after 2034

Links to good informational resources for the tax issues associated with the Federal ITC and MACRS depreciation:

• Federal Solar Tax Credit Resources (Energy.gov)
• Solar Investment Tax Credit (SEIA)
• Depreciation of Solar Energy Property in MACRS (SEIA)
• Modified Accelerated Cost-Recovery System (MACRS) (DSIRE)
• Cost Basis for the ITC and 1603 Applications (SEIA)
• IRS Form 4562 (Depreciation and amortization)

Outdated Information

Past ITC Levels:

• 26% for systems placed in service after 12/31/2019 and before 01/01/2023
• 22% for systems placed in service after 12/31/2022 and before 01/01/2024

Informational Resources:

• How Batteries Qualify for ITC (SolarPowerWorld)