Yes. The federal solar tax credit, also known as the investment tax credit (ITC) allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems and there is no cap on its value. In addition to the federal tax credit, New Yorkers who install rooftop solar equipment are eligible for NYS solar tax credits. The personal tax credit in New York state is about 25 percent of the cost of your system up to $5,000.