The Inflation Reduction Act of 2022 includes the “non-business energy property credit” that allows you to claim a tax credit on your federal income taxes equal to 30% of eligible expenses for a residential solar system. It applies to the installation of solar panels or other equipment that relies on a renewable energy source (such as solar, wind, geothermal or fuel cell technology) in your primary home or vacation home.
The credit is retroactive to the beginning of 2022. Any solar panel installations or other qualifying projects completed between January 1, 2022, and December, 31, 2032, qualify for the credit. The credit decreases to 26% in 2033, 22% in 2034, and ends in 2035. Previously, legislation was set to expire in 2024, providing 26% credit in 2022, and 22% in 2023.
Visit the U.S. Department of Energy for specific information on what type of equipment is eligible for the credit.