Domestic Content Bonus
An IRA provision granting a 10% ITC bonus for solar projects using panels and components manufactured or assembled in the United States, as defined by percentage of cost thresholds.
Why It Matters
Choosing US-manufactured panels can increase your federal tax credit from 30% to 40%. As more factories open domestically, qualifying products are becoming more available.
Related Terms
Federal Tax Credit (ITC)
Investment Tax Credit allowing homeowners to deduct a percentage of solar installation costs from federal taxes. Currently 30% through 2032.
IRA (Inflation Reduction Act)
Landmark 2022 federal legislation that extended and expanded clean energy tax credits, including the 30% solar ITC through 2032, and added new incentives for batteries, heat pumps, and EVs.
Adder (Tax Credit Bonus)
Additional percentage points on top of the base 30% ITC for projects meeting specific criteria: low-income community (+10-20%), domestic content (+10%), energy community (+10%), under 5 MW (+10%).