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(ITC)- Income Tax Credit- Making solar more affordable for homeowners

The 2022 Inflation Reduction Act restores and extends federal solar tax credits. This includes the residential Investment Tax Credit (ITC). Thanks to the bill, homeowners who install solar between the start of 2022 through the end of 2032 will be able to deduct 30% of the cost from their federal income tax liability. If you owe less than that amount in federal taxes for the year you install your system, you can carry over any unused credit to the next year.

After 2032, the residential ITC will start to phase out. It drops to:

  • 26% in 2033
  • 22% in 2034
  • 0% for 2035 and beyond

Property Taxes

Florida provides a 100 percent property tax exemption for residential renewable energy property. Eligible renewable energy property includes solar photovoltaic (PV) systems, solar PV plus storage systems, wind energy systems, solar water heaters, and geothermal heat pumps installed on or after January 1, 2013. Keep paying your previous property tax after you install a home solar system. Homeowners in Florida enjoy a property tax exemption. The value of their home will not be reassessed.

No Sales Tax on Solar

Since July 1997, solar energy systems have been exempt from Florida’s sales and use tax. In May 2005, the exemption was made permanent upon the enactment of H.B. 805. This exemption applies to solar hot water, solar space heaters, photovoltaic systems, solar pool heating and all associated components. The Florida Solar Energy Center periodically revises the list of equipment and requisite hardware considered to be a solar energy system.


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