Glossary
ITC (Investment Tax Credit)
ITC (Investment Tax Credit) is the umbrella term the solar industry uses for the federal credit for installing a system. In practice it is two sections of the code: 25D for homeowners who buy (ended for systems placed in service after 2025) and 48E for third-party-owned systems (in force through the end of 2027). Confirm with your tax preparer.
What the ITC is
When a salesperson, an article or an installer says “the ITC,” they almost always mean the 30% federal credit without saying which one. The problem is that in 2026 the distinction is all that matters. 25D was the residential ITC: the homeowner claimed it when buying the system. 48E is the commercial ITC: the company that owns a system under a lease, PPA or subscription claims it.
Before the One Big Beautiful Bill Act both coexisted and “the ITC” was an acceptable shorthand. Today, using the term without the section number is a sign the salesperson is not up to date, or would rather you were not.
Why it matters in Florida
Florida has no state income tax, so state incentives work differently (property tax exemption, sales tax exemption). The federal credit was the big financial incentive, and its change in 2026 redefines which way of acquiring solar makes sense. Short version: buying lost its incentive; third-party solar keeps it through 2027.
Any 2026 proposal that shows “ITC 30%” subtracted from the price on a cash or loan purchase is wrong.
Common mistake
Searching “solar ITC 2026” online and reading articles written before the law changed. Many are still up with figures and deadlines that no longer apply. Go to the source: IRS.gov, energy.gov, and your tax preparer with your specific situation. In the federal solar tax credit in 2026 we summarize what changed and who it affects.
Full guide: Federal solar tax credit in 2026: the 30% ended for buyers, continues for lessors →
Updated