Federal Residential Solar Tax Credit (Section 25D)
Last checked: April 2026
The 30% federal tax credit that covered direct-ownership residential solar ended on December 31, 2025 under the One Big Beautiful Bill Act signed July 4, 2025. This was an early termination of the long-term Inflation Reduction Act extension, which had been scheduled to run through 2032. If you did not have a system physically installed and operational by the end of 2025, the 25D credit is no longer available to you.
Key facts
- Hard deadline: December 31, 2025. Already passed.
- Signing a contract or paying a deposit in 2025 was not enough — the IRS required the physical installation to be complete.
- Third-party ownership (solar leases, PPAs, prepaid products) is still eligible under the 48E business investment credit through end of 2027 — but that is a different credit, claimed by the installer, not the homeowner.
- If you are being pitched on 'the federal credit' for a new direct-ownership project in 2026, ask the installer to point to the specific IRS guidance. There is not one.