Federal Solar Tax Credit Checker
The 30% federal residential solar credit ended for systems placed in service after Dec 31, 2025. Check which rule applies to your system.
Many pages still say "30% federal solar tax credit." That was true through 2025. The One Big Beautiful Bill Act ended the credit for any system placed in service in 2026 or later, with no phase-down. This checker tells you which rule applies to you.
Federal Solar Tax Credit Checker
Your Federal Credit Status
How this is calculated
The federal residential clean energy credit (Internal Revenue Code Section 25D) let homeowners who bought or loan-financed their own solar system claim 30% of the system's cost as a direct tax credit, with no cap and no income limit, through the end of 2025.
What changed in 2025
The One Big Beautiful Bill Act, signed July 4, 2025, ended that credit early. Any residential system placed in service on or after January 1, 2026 gets 0%, with no phase-down. A system placed in service on or before December 31, 2025 still gets the old rate for that tax year.
Leased systems and power purchase agreements were never eligible for the homeowner's 25D credit, because the solar company is the legal owner of the system. A separate commercial credit (Section 48E) can still apply to the company and may be reflected in your lease pricing, but you have nothing to claim yourself.
State-level credits
California itself has never run its own state-level solar income tax credit, so there's no state backstop once the federal credit is gone. Separately, and unaffected by any of this, California's active-solar property tax exclusion still prevents a home's assessed value from being reassessed upward for adding solar, as long as construction finishes by the exclusion's current sunset date of 2026-12-31.
Frequently Asked Questions
Is there still a 30% federal solar tax credit in 2026?
No, not for a homeowner who buys or loan-finances a system. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, ended the 25D residential clean energy credit early. The rate went to 0% for any system placed in service after December 31, 2025, with no phase-down period. If your system was placed in service on or before that date, you can still claim the 30% credit on that tax year's return.
Does California have its own state solar tax credit?
No. California has not had an active state-level solar income tax credit in the current era. Only the federal 25D credit ever applied to California homeowners, and that credit is now terminated for residential purchases placed in service after 2025.
What if I have a solar lease or PPA instead of owning the system?
With a lease or power purchase agreement (PPA), the solar company owns the system, so you never claimed the 25D homeowner credit. The company may still claim a separate commercial credit (Section 48E) and typically reflects that value in your lease or PPA pricing. You had no personal tax credit under these arrangements, so you have none to lose.
Does going solar still avoid a property tax increase?
Yes, separately from the income tax credit question. California has a property tax exclusion so that adding an active solar energy system does not trigger a reassessment of your home's value, as long as construction is completed by the exclusion's current sunset date. This is unrelated to the federal income tax credit and has not been repealed.
Can I still deduct anything for solar on my 2026 taxes?
For a system you place in service in 2026 or later, there is no federal residential solar tax credit to claim. If your system was placed in service in 2025 or earlier and you haven't claimed the credit, you may still be able to claim 30% on that tax year's return. Confirm with a tax professional, because amended-return deadlines apply.
This tool provides an educational estimate only and is not tax advice. Tax credit eligibility depends on your filing situation, system documentation and the IRS rules in effect when you file. Confirm your eligibility with a licensed tax professional before relying on any figure here.