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Tax Benefits for Solar Panels in 2025

Installing solar panels for your business or solar panels for RV parks is a sustainable and cost-saving choice. In 2025, businesses can claim a 30% federal solar tax credit for business under the Inflation Reduction Act, offsetting installation costs. Solar4Biz Pros explains how to maximize tax benefits of solar panels. Contact us here for a consultation.

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What Is the Federal Solar Tax Credit for Businesses?

The federal solar power tax credit (Investment Tax Credit or ITC) lets businesses deduct 30% of solar panels for your business installation costs from your federal taxes.

Key Details (2025):
  • 30% credit on eligible costs.
  • Applies to new solar systems only.
  • Must be placed in service during the tax year.

Credit steps down to 26% in 2033, 22% in 2034. Start saving with solar panels for your business today.

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Eligible ITC Expenses

The ITC covers costs for solar panels for RV parks and other commercial installations, including:
  • Solar panels and photovoltaic (PV) modules
  • Inverters and wiring
  • Mounting equipment
Labor costsSolar-charged Energy storage

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How to Claim the ITC

Claim tax benefits of solar panels by filing IRS Form 3468 with your tax return.

Steps:
  • Keep invoices and system records.
  • Ensure code compliance.
  • File in the year the system is active.
Consult a tax professional for accuracy.

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Tax Write-Offs for Solar

Beyond the ITC, solar panels for your business qualify for MACRS depreciation over five years, reducing taxable income. Bonus depreciation may apply, enhancing tax benefits of solar panels.

What Is the Difference Between ITC and PTC?

While the Investment Tax Credit (ITC) reduces upfront installation costs, the Production Tax Credit (PTC) rewards energy production over time.

Key differences:

Features

Type of credit

Based on

Who benefits most

ITC

One-time tax credit

Cost of the system

Businesses with high install costs

PTC

Per kilowatt-hour over 10 years

Energy production (kWh)

Businesses with high energy generation

Most commercial users choose the ITC due to its more immediate financial return.

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Can a Business Claim the Solar Tax Credit More Than Once?

Businesses can claim the solar panel tax credit for business on each new eligible solar system they install, provided the installations occur in different tax years and meet all ITC requirements. Visit our FAQ page for more information.

Bonus Incentives

Yes. In some cases, businesses can access bonus credits depending on:
  • Use of U.S.-manufactured solar components
  • Installation in low-income areas
  • Compliance with prevailing wage and apprenticeship standards
These may add up to 10-20% more on top of the standard credit. Businesses should review current IRS guidelines or consult a tax advisor.

Why Your ITC May Be Reduced

Some businesses do not receive the full credit amount due to:
  • Insufficient tax liability in the claim year
  • Improper filing of IRS Form 3468
  • Ineligible equipment or non-qualified expenses
Unused portions of the credit can often be carried forward to future tax years, depending on the company’s tax situation.

Why Choose Solar4Biz Pros?

Solar4Biz Pros helps businesses maximize tax benefits of solar panels for solar panels for your business or solar panels for RV parks.

Expert ITC guidance

Custom solar solutions

Nationwide support

Contact us here!

Frequently Asked Questions

The ITC offers a 30% solar panel tax credit for business through 2032 for solar panels for your business costs.

File IRS Form 3468 with your tax return, documenting eligible expenses. See our Tax Guide.

Yes, the 30% ITC applies for solar panels for RV parks and other businesses.

Yes, if the system is new, U.S.-based, and owned by the business.

Panels, inverters, mounting, labor, and solar-charged storage for solar panels for your business.

Low tax liability, filing errors, or ineligible costs may reduce the credit. Unused credits can carry forward.

Bonus credits (10–20%) for U.S.-made components, low-income areas, or labor compliance. See our Incentives Guide.