Nov 15, 2023

Maximizing Savings with Federal Solar Tax Credits

As businesses increasingly embrace sustainable practices, the federal government has stepped in to support this green revolution. For entities like businesses, nonprofits, and local governments, two powerful tools exist to encourage the adoption of solar energy systems: the Investment Tax Credit (ITC) and the Production Tax Credit (PTC). At Halo Solar, we want to shed light on these tax credits, guiding you on how they can significantly reduce your federal income tax liability.


Understanding the Investment Tax Credit (ITC):

The ITC is a beacon for businesses looking to make the shift to solar energy. This tax credit allows you to reduce your federal income tax liability by a percentage of the total cost of a solar system installed during the tax year. At Halo Solar, we specialize in helping businesses navigate the ITC landscape, ensuring you maximize the financial benefits available. 


Exploring the Production Tax Credit (PTC):

The PTC is a per kilowatt-hour tax credit specifically designed to incentivize the generation of electricity from solar and other qualifying technologies. Lasting for the first 10 years of a system's operation, this credit not only reduces federal income tax liability but is also annually adjusted for inflation. Our team at Halo Solar is well-versed in the nuances of PTC, providing you with expert guidance to optimize its benefits.


Navigating the Intersection of ITC and PTC:

While generally project owners cannot claim both the ITC and the PTC for the same property, there are strategic opportunities for co-located systems, such as solar and storage. The IRS issues guidance that may impact the eligibility of these dual credits. Our experts stay informed on the latest IRS directives, ensuring you make informed decisions that align with your business goals.


As businesses strive for sustainability and financial success, the solar landscape has become a beacon of opportunity. The Investment Tax Credit and the Production Tax Credit are powerful allies, offering substantial reductions in federal income tax liability. At Halo Solar, we're not just your solar providers; we're your partners in navigating the complexity of tax credits, ensuring you harness the full potential of solar energy for your business. Contact us today to start your solar journey to a greener and more profitbale future!


To learn more about federal solar tax credits for businesses, click here!