There are two primary incentives in Pennsylvania and New Jersey — The Investment Tax Credit (ITC) and SRECs. The 26 percent federal ITC has been renewed through 2032, a result of the Inflation Reduction Act. By filing an additional form with your federal taxes the year following completion of the installation, you will receive a tax credit equal to 30% of the total cost of your solar energy system. For example, if you’re system is completed in 2022, you will file for your return in 2023.