Investment Tax Credit (ITC)

The Investment Tax Credit (ITC) is a government incentive that reduces the amount of taxes a business or individual owes when they invest in certain renewable energy projects, like solar or wind power. Essentially, it offers a percentage of the upfront cost as a tax credit, making the investment more affordable. For example, if you spend $100,000 on solar equipment and the ITC is 30%, you could reduce your tax bill by $30,000. This encourages the adoption of clean energy by lowering the financial barriers.