The Solar Investment Tax Credit (ITC) is a dollar-for-dollar federal tax credit that reduces a person or business’ tax liability based on the amount they have invested in a solar energy project. The residential and commercial ITC are both worth 26% of a solar project’s cost through 2022. For example, a $10,000 solar electricity system will be eligible for a $2,600 federal tax credit. Customers that purchase or finance their system through a solar loan are eligible for this incentive.