FEDERAL RESIDENTIAL CLEAN ENERGY CREDIT (25D)
* EXPIRED *
Federal 25D rooftop solar tax credit
The deadline to make a credit-eligible upgrade has passed. If you completed a qualifying rooftop solar project by December 31, 2025, read on for how to apply this credit when you file your taxes in 2026.
View other eligible projects under this tax credit:
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Introduction
Introduction
Disclaimer: The information presented here is for educational purposes only. It is not intended to provide specific tax guidance. For questions regarding your individual tax situation, we suggest consulting with your tax advisor.
Tax Credit
30%
Expired Dec. 31, 2025
Which rooftop solar projects qualify?
This tax credit can be applied to eligible costs associated with purchasing and installing rooftop solar panels on your home by the Dec. 31, 2025 deadline.
To qualify for this tax credit, your solar panel purchase must have been brand new and installed by Dec. 31, 2025.
You can include labor costs associated with onsite preparation, assembly, or installation of your rooftop solar panels. Purchase and installation of piping and wiring required to connect new solar panels with your home may also qualify for this tax credit.
In general, traditional roofing materials and structural parts don’t qualify for this tax credit. These materials are excluded because they primarily serve a roofing or structural function, not an energy-generating function. However, some solar roofing tiles and shingles qualify for this credit because they generate solar energy and provide structural support.
Who qualifies for the 25D rooftop solar tax credit?
This tax credit applies to everyone who pays federal income taxes.
No income requirements
There are no income limitations for the 25D Tax Credit. However, like nearly all federal tax credits, you must pay federal income taxes in order to qualify.
All US residents who live in their homes
The 25D rooftop solar tax credit can be applied to a new or existing home that is located in the United States. This means that unlike 25C tax credits, a home that is under construction when you apply for the rooftop solar tax credit can qualify.
Additionally, you must live in the property at least part of the year. Landlords can never claim this credit for homes they rent out but do not use as a residence themselves.
What is the 25D rooftop solar tax credit?
The rooftop solar tax credit offers an uncapped tax credit to cover 30% of eligible costs of purchasing and installing solar panels for all homeowners who pay federal income tax.
This incentive is available through the 25D Residential Clean Energy Property Credit, a US government program that covers 30% of qualifying costs of installing solar panels.
The 25D tax credit doesn’t just apply to solar panels. It also covers several other residential clean energy property upgrades, including geothermal heat pumps, solar water heaters and battery storage equipment.
Here’s a list of popular residential projects that qualify for the 25D tax credit:
| Project Type | How much funding can you receive from 25D for qualifying projects? |
|---|---|
| Project Type:Solar panels | How much funding can you receive from 25D for qualifying projects?:30% of qualified expenditures made for property installed by Dec. 31, 2025. |
| Project Type:Solar water heaters | How much funding can you receive from 25D for qualifying projects?: 30% of qualified expenditures made for property installed by Dec. 31, 2025.
|
| Project Type:Geothermal heat pumps | How much funding can you receive from 25D for qualifying projects?: 30% of qualified expenditures made for property installed by Dec. 31, 2025.
|
| Project Type:Battery storage technology | How much funding can you receive from 25D for qualifying projects?: 30% of qualified expenditures made for property installed by Dec. 31, 2025.
|
Source: Internal Revenue Service
Tax credit limitations
The 25D rooftop solar tax credit covers 30% of your solar project’s eligible costs. There’s no cap, or maximum dollar amount, for projects that are categorized under this tax credit, as long as the project was completed by the end of the year.
Generally, you must subtract any price adjustments from the cost of the item. This can mean rebates, utility subsidies, financial incentives, and anything else that lowers the price point. This part can get a little tricky, so be sure to check the Frequently asked questions about energy efficient home improvements and residential clean energy property credits. for more information.
The 25D tax credit is “non-refundable,” which means that you can't get back more than you pay in federal income taxes.
If 30% of your project’s cost is $6,000, but you only owe $1,000 in federal income taxes that year, you would receive a $1,000 credit.
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