At the federal level, consumers can receive a 30 percent federal tax credit for solar installations and this now includes stand-alone energy storage devices that have a capacity rating of 5 kilowatt hours or greater. The Investment Tax Credit, or ITC, which was expanded and extended as part of the Inflation Reduction Act that Congress approved earlier in 2022, offers a tax credit for solar systems on residential that can be applied for a dollar-for-dollar reduction in the amount of income tax that would otherwise be owed.  The credit drops to 26 percent in 2033 and 22 percent in 2034, then disappears in 2035 unless Congress extends it. The Solar Investment Tax Credit (“ITC”) is a federal tax credit for solar systems placed on residential (under Section 25D) and commercial (under Section 48) properties.