ITC Tax Credit
What is the itc tax credit?
A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe.
Example: Claiming a $1,000 federal tax credit reduces your federal income taxes due by $1,000.
What expenses does the ITC Tax Credit Apply to?
Solar PV Panels
- Labor: Installation, site preparation.
- Fees: Permitting, Inspection, Developer
- Balance of System Components: Wiring, Racking, Inverters.
- Energy Storage Systems: Rated greater than 3kWh’s Sales Tax
Base Credit 30%
Domestic Content Bonus
Energy Community Bonus
LMI Communities or Native Land
Qualified Low-income residential
What about the Labor Requirements for Prevailing Wage for the 40% Domestic Content?
Solar projects with a maximum net output under 1MW (AC) have no prevailing wage requirement.
Under section 48(a)(9)(B)(i), projects that have a max net output of less than 1MW (measured in AC) are deemed to satisfy the
prevailing wage and apprenticeship requirements under 48(a)(9)(B)(iii). As a result, such “small energy projects” are generally
available for the 5x multiplier bonus credit rate available under section 48(a)(9)(A)(i).
Why Do TSI Modules qualify for 40% vs 30%
FOR FOREIGN MADE PV MODULES.
- TSI modules meet all Domestic Content qualifiers by the U.S. Fed Government.
- 100% manufactured in the U.S.
- All semi-conductor materials (CdTe) manufactured under the same roof as our modules in Perrysburg/Toledo Ohio. We import no cells, wafers, aluminum, wires, junction boxes etc.