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A taxpayer that places a qualifying renewable energy project (such as a solar photovoltaic array) into service in the course of a trade or business is generally permitted to claim ITCs equal to 6 percent of the tax basis of that project. 1 The amount of ITC increases to 30 percent.
When a state or locality has a property tax exemption for a solar system in place, your tax bill doesn't include the added property value from your solar panels.
As of 2025, the federal ITC provides a 30% tax credit for qualified commercial solar installations. This rate is scheduled to remain at 30% through 2032, after which it will step down to 26% in 2033 and 22% in 2034.
As part of the renewable energy GST 2025 update, India's GST 2. 0 package reduced the GST rate on renewable-energy devices and parts — notably solar panels, inverters, wind generators and related components — from 12% to 5%, effective 22 September 2025.
The federal solar tax credit provides a 30% credit against your federal income tax liability for the total cost of your solar installation. Thanks to the Inflation Reduction Act of 2022, this generous 30% rate is locked in through 2032, providing certainty for homeowners planning.
Effective April 1, 2026, China will eliminate value-added tax (VAT) export rebates for photovoltaic (PV) products, including solar cells, modules, inverters, and related components. This follows a prior reduction from 13% to 9% in December 2024.