The Federal Residential Solar Tax Credit in 2026
As of November 14, 2026, homeowners should not assume a 30% federal tax credit on a solar or battery system installed in 2026. The Internal Revenue Service states that the Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property installed from 2022 through December 31, 2025, and that “the credit is not available for any property placed in service after December 31, 2025.”
That credit lives in Internal Revenue Code § 25D. Public Law 119-21 (commonly called the One Big Beautiful Bill Act), enacted July 4, 2025, moved the termination date up. The U.S. Code now says the credit “shall not apply with respect to any expenditures made after December 31, 2025.”
Payment in 2025 is not enough if installation finishes in 2026
This is the detail that catches people. IRS FAQs on the 2025 law (FS-2025-05) ask whether a taxpayer can claim the credit for property installed after December 31, 2025, if they paid on or before that date. The IRS answer is no. Section 25D(e)(8)(A) treats an expenditure as made when the original installation of the item is completed. If installation is completed after December 31, 2025, the expenditure is treated as made after that date, and the credit is not allowed. For property tied to construction or reconstruction of a structure, the expenditure is treated as made when the taxpayer’s original use of the constructed or reconstructed structure begins.
What the credit used to cover
When it was in effect, § 25D applied to qualified solar electric property, solar water heating, certain other clean-energy property, and, beginning in 2023, qualified battery storage technology. The credit was nonrefundable (it could not exceed your tax liability) but unused amounts could be carried forward under the rules then in effect. Used equipment did not qualify. We mention this for context only; it does not revive the credit for a 2026 installation.
What we will and will not do in a SolCheck proposal
We will not include a 30% federal Residential Clean Energy Credit in estimates or quotes for systems installed after December 31, 2025, unless the law changes and the IRS updates its guidance. If Congress later restores or replaces the credit, we will update this page and our proposals. A change in party control of Congress does not, by itself, change the tax code.
Other incentives — state, local, or utility — may still exist and have their own deadlines. NBU, for example, has published a residential solar rebate with its own eligibility rules. Those programs are separate from § 25D and must be verified at the time you buy. This article is not tax advice. Confirm your situation with a qualified tax professional, and use IRS Form 5695 and current IRS instructions if you are claiming a credit for property that was actually placed in service while the credit was in effect.
Sources
- IRS, “Residential Clean Energy Credit,” stating the 30% credit applies to property installed from 2022 through December 31, 2025, and is not available for property placed in service after that date. irs.gov.
- IRS, “FAQs for modification of sections 25C, 25D, … under Public Law 119-21” (FS-2025-05), including Q1 (termination date) and Q7 (installation completed after December 31, 2025). irs.gov newsroom.
- 26 U.S.C. § 25D, including subsection (h) termination: expenditures made after December 31, 2025. U.S. Code.