Federal Investment Tax Credit (ITC)
The Investment Tax Credit (ITC) is one of the biggest incentives available to Colorado homeowners. The federal government is currently offering a 26% investment tax credit against the total cost of a home solar system.
How it works:
If you buy your solar system outright, you can apply 26% of the total cost of your solar system installation to your tax liability for the year.
For example, if you purchase a solar panel system that’s worth $20,000, you can get a credit of $5,200 on your federal taxes.
Keep in mind, this is not a cash rebate — it’s a tax credit.
But you have to act fast. Starting in 2021, the value of the tax credit will lower to 22%. After 2022, the tax credit for residential solar systems will end.