Residents in every state of the U.S. are eligible for the Federal Solar Tax Credit, which grants homeowners the right to deduct 30% of the total cost of installing a solar energy system from their federal taxes. In addition to the Federal ITC, most states offer additional tax breaks, solar incentives and rebates. Since solar incentives vary significantly from state to state, it is important to do your research in order to get the most out of your state’s solar incentives.