Renewable Energy Investment Tax Credit

The Renewable Energy Investment Tax Credit (ITC) is a financial incentive in the United States that allows individuals and businesses to deduct a percentage of the cost of installing renewable energy systems, like solar panels and wind turbines, from their federal taxes. This tax credit encourages investment in clean energy by making it more affordable. The percentage varies over the years; for example, it was 26% for solar systems installed in 2020-2022. By reducing the upfront costs, the ITC helps accelerate the adoption of renewable energy sources, contributing to a more sustainable energy future.