What is the solar tax credit percentage?

The Inflation Reduction Act (IRA) extends the solar tax credits at 30% through 2034

The Residential Energy Efficient Property (REEP) Credit is renamed the “Residential Clean Energy Credit” and extended an additional 11 years. It is now available for property placed in service prior to January 1, 2035. The full 30% credit is now available for eligible expenditures through the end of 2032. The credit is phased down to 26% in 2033 and then to 22% in 2034.

As before, the credit under IRC §25D is nonrefundable, but unused credits can be carried over indefinitely.

The credit’s key features are:
• There is no maximum credit any taxpayer can take (annually or lifetime);
• The credit is not limited by the taxpayer’s AGI;
• The credit can offset AMT;
• The credit is not subject to recapture if the home is sold immediately after installing solar; and
• The credit is nonrefundable, but any unused portion may be carried forward indefinitely, even into years where the credit is no longer available for new property.

The credit is available for clean energy property installed on any personal use property, including a principal residence and vacation homes. There is no limit to the number of years or homes for which the taxpayer can claim the credit. The key is that the property must be personal use property.