The investment tax credit is a type of tax benefit offered by the government to encourage primarily business taxpayers to invest in certain areas or activities it considers to be beneficial. Tax credits directly reduce the amount of tax owed, and some are refundable or partially refundable, which means that you could receive all or some remaining credit back as a tax refund once your tax has been paid.

To qualify for an investment tax credit, the project must meet specific requirements and must be designated for a specific purpose. The types of projects investment credits have covered in the past include energy-efficient upgrades or renewable -energy technologies, like solar panels. However, the One Big Beautiful Bill act (OBBBA) ends both the Energy Efficient Home Improvement Credit and Residential Clean Energy Credit as of December 31, 2025.

Have questions or concerns about investment tax credits? Want to make sure you get every credit, deduction, and dollar you’re due when you file your tax return? Schedule an appointment to talk taxes with the pros today.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: September 15, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.