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ITC Step Down: Solar Federal Tax Credits are Dropping

Updated: Jun 28, 2022

The ITC is slated to decrease: In a Nutshell


The ITC is a tax credit for solar power systems on commercial properties and it's scheduled to step down to 22% after this year. Business owners who want to realize the full benefits of the current 26% tax credit should act now.



A step down means less financial enticement for businesses who will soon need to become more sustainable, anyway. If you've considered upgrading to solar, it's time to get the installation process started to make the cut-off date.


What it means for business owners.


The deduction in the federal solar tax credit would amount to thousands of dollars in lost incentives for a commercial building sized solar panel system.


For a business to fully max out the 26% tax credit for solar, they are required to have a new solar project completely installed by Saturday, December 31, 2022.


A commercial solar panel system can take a minimum of three months from design/permitting approval to actual installation and permission to operate. You should always generally plan on rain delays for any larger outdoor installation project like solar.


Action must be taken in the next weeks of 2022 for any company operating in the country without solar power and wants to get the 26% back for investing in renewable energy. At EES, we show all available incentives & tax credits within the proposal. We also navigate SHOW ME PACE financing, Ameren rebates & other opportunities for boosting the return on investment for a commercial solar power system.



Our solar technicians respond quickly to requests, and can still get solar installs done in time to qualify for the 26% credit you'll appreciate seeing at tax time. Looking for a local business to install solar panels? Let us know! We can design & install solar panels in time for the deadline that's fast approaching.



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