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Solar ITC Stacking Calculator

Stacked solar credits can cover 50-70% of installation cost.

$
%

Total stacked credit

$2,500,000

Total credit %

1%

Net cost after credits

$2,500,000

How the math works

Total % = base (30% with prevailing wage) + domestic (10%) + low-income (10-20%). Credit = cost × total %.

$5M × (30% + 10% + 10%) = $5M × 50% = $2.5M credit. Net cost $2.5M.

How to Use

  1. Enter solar project cost.
  2. Enter domestic content bonus (1=yes).
  3. Enter low-income bonus %.
  4. Enter prevailing wage bonus (1=yes).
  5. Read total stacked credits.

Frequently Asked Questions

What's the base ITC?

Inflation Reduction Act (2022): 30% base federal Investment Tax Credit for solar/wind/battery. Extended through 2032. Step-down begins 2033. Prior law was 26% declining — IRA restored to 30% and added several bonus adders. For both residential (Section 25D) and commercial (Section 48). Takes credit in year placed in service. Requires ownership + operational use.

Domestic content bonus?

Additional 10% credit for meeting domestic content requirements (steel/iron 100% domestic; manufactured products minimum % domestic, rising from 40% in 2023 to 55% by 2026). Complex documentation required. Worth 10 percentage points (e.g., 30% + 10% = 40% total) — major incentive. Industry supply chain shifting to meet. Expect broader adoption by 2025-2026.

Low-income bonus?

Additional 10% for facility in low-income community. Additional 20% if facility provides 50%+ benefit to low-income residents. Competitive allocation via Treasury (capped annually at 1.8 GW). Combined with base 30% and domestic content 10% = up to 70% total ITC. Major value for affordable housing developers integrating solar.

Prevailing wage?

Additional 5x multiplier on base ITC if project meets prevailing wage and apprenticeship requirements. Without it, base ITC drops from 30% to 6%. Without prevailing wage, bonuses also reduced. Almost all commercial solar projects now meet prevailing wage to get full 30% + bonuses. Requires formal documentation, training program, apprentice hours. Union relationships help. Admin cost but huge credit value.

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