The Federal Solar Tax Credit, also known as the investment tax credit (ITC) encourages the use of renewable energy by currently providing a twenty six percent (26%) tax credit of the total value of the solar you own. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. While most customers who qualify for solar ownership have a large enough tax burden to take advantage of the full tax credit, consult your tax advisor for advice on your specific situation.