Solar Tax Credits Rebates

Boost Your Total Tax Credit

How Much Is the Credit?

The base federal Investment Tax Credit (Section 48E) is 30% of the qualified cost of your solar system.
Additional bonuses can increase the total credit:
  • +10% Domestic Content (U.S.-made equipment)
  • +10% Energy Community (projects in qualifying locations)
When both bonuses apply, the total credit can reach 50% of system cost.

Key Deadlines

  • Projects that began construction by July 4, 2026 generally have a longer window to complete and still claim the full credit.
  • Projects starting construction after July 4, 2026 must be fully installed and producing power (placed in service) by December 31, 2027 to qualify.

Extra Tax Benefit: Depreciation

Commercial solar qualifies for accelerated depreciation. In many cases, businesses can deduct a large portion — or even 100% — of the system’s depreciable basis in the first year under current bonus depreciation rules. Combined with the tax credit, this significantly improves the financial return.

Who Can Claim It?

  • Businesses and other taxable entities that own the system
  • Nonprofits, schools, municipalities, and other tax-exempt organizations (often through direct pay options)

Missouri Note

Missouri does not currently offer a state solar income tax credit. The main financial benefits come from the federal tax credit, depreciation, and utility net metering programs.

Important Details

Qualified costs typically include solar panels, inverters, racking, wiring, and installation labor. Structural or roofing work that is not part of the solar system is generally excluded. Prevailing wage and apprenticeship rules apply to larger systems for the full 30% rate. Equipment sourcing rules (including Foreign Entity of Concern restrictions) also apply to most projects.

Plan Smarter With Solar Insights

Ready to see how the tax credit applies to your project?

Contact Solera Energy for a free proposal and customized financial analysis. Tax rules are complex — we recommend consulting your tax advisor for advice specific to your situation.
Information current as of August 2026. Tax laws and IRS guidance can change.
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