What will Happen to the Federal Solar Investment Tax Credit Moving Forward
With the 2024 election season heating up and clean energy policy facing increasing scrutiny, it’s no surprise that many homeowners are wondering: Is the solar tax credit still safe?
We recently reached out to a Colorado representative for clarity — and while they couldn’t offer financial advice directly, their response struck a tone many of us are feeling right now:
“This is a highly dynamic situation.”
And that’s exactly why we’re encouraging Colorado families to act now — while the 30% Federal Solar Investment Tax Credit (ITC) is still in full effect and offering major savings.
The Investment Tax Credit lets you deduct 30% of your total solar installation costs — including labor, materials, batteries, and permitting — directly from your federal tax bill. If your system costs $20,000, that’s a $6,000 savings come tax season.
The ITC was extended through 2032 under the Inflation Reduction Act, but as our contact reminded us:
“Many observers of the IRA believe there is a low risk that the clean energy tax credits… will be modified or eliminated in 2025. However, these same observers also say that the risk increases as you extend the time horizon.”
Translation?
📉 The longer you wait, the more uncertain things become.
At Sol Energy, we’ve been serving the Roaring Fork Valley and surrounding communities for over 20 years. We’ve seen solar incentives come and go — and we know how quickly windows of opportunity can close.
“You are right to say this is a highly dynamic situation… and I recommend anyone considering a project supported through Elective Pay to consult with a tax professional before they begin.”
We agree — talk to your tax advisor, and then talk to us.
Based in western Colorado, Sol Energy has been helping families in Carbondale, Snowmass, Aspen, Glenwood Springs, and beyond switch to solar with confidence and clarity.
