Federal Tax Credit
The Federal Tax Credit, (or Investment Tax Credit) currently at 30%, is set through 2019, followed by a step down to 26% in 2020 and 22% in 2021. Beginning 2022, the Federal Tax Credit will be 10% for Commercial Projects and 0% for Residential Projects. The ITC is available to all California residents who purchase their photovoltaic solar system, with no upper limit. This applies to all existing and new construction homes. (Homeowner must have a federal tax liability to take advantage of the solar investment tax credit.)
The Federal Tax Credit is a one-time credit, but may be carried forward (and possibly back). The IRS current federal tax form for the investment credits is Form 3468.
The California Solar Initiate (CSI) reached its 10th and final tier in April 2013, exhausting all its funds. However, there is still a state rebate in effect as part of the New Solar Home Partnership Program (NSHP), as an incentive to install solar on a new home.