The Inflation Reduction Act includes several provisions that modify and extend tax credits for solar projects. One of the key provisions is the extension of the Investment Tax Credit (ITC) for solar energy property through at least 2033

The government can provide a tax deduction or a tax credit to incentivize specific activities. Tax deductions reduce income subject to tax, whereas tax credits reduce the amount of taxes owed. Which is more valuable? As with most answers in taxes, it depends.