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Solar Professionals of Illinois
"CREATING A FUTURE POWERED BY
CLEAN TECH SOLAR ENERGY"
DISCOVER ILLINOIS SOLAR REBATES AND INCENTIVES
ILLINOIS STATE INCENTIVE
Solar Renewable Energy Credits (SRECs) –The Illinois Shines program (officially the Adjustable Block Program) is a state-administered incentive that pays owners of distributed solar systems (like rooftop solar) for the renewable energy credits (RECs) their systems produce over 15 years. It's not a tax credit or rebate—it's a long-term contract that dramatically improves the financial return of going solar in Illinois.
FEDERAL INCENTIVE
The Federal ITC is a tax credit that allows you to deduct a significant percentage of the cost of installing a solar energy system from your federal income taxes. It reduces the amount of tax you owe, dollar-for-dollar. The ITC is not a rebate—you must have sufficient tax liability to claim it. The ITC is non-refundable, meaning it can reduce your tax bill to zero, but you will not get a "refund" for any excess credit beyond what you owe. If your tax credit is larger than your tax liability for the year, the unused balance can be "carried forward" to future tax returns. There is no limit on the number of years you can carry it forward under the current law. You must own the system (via cash purchase or loan). Leases and PPAs (Power Purchase Agreements) do not qualify—the system owner (the leasing company) claims the credit, and the benefit is passed to you indirectly in the form of a lower lease rate.
DISCLAIMER: Some customers may not be eligible for the Federal Income Tax Credit (“FITC”) due to low or no taxable income.
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