Federal Solar Tax Credit Checker
The 30% federal residential solar credit ended for systems placed in service after Dec 31, 2025 — check what actually applies to your situation.
Most pages you'll find still say "30% federal solar tax credit." That was true through 2025. The One Big Beautiful Bill Act ended it early for anyone placing a system in service in 2026 or later — no phase-down, straight to zero. This checker tells you which rule actually 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, terminated that credit early: any residential system placed in service on or after January 1, 2026 gets 0% — not a phase-down, a full stop. A system already placed in service on or before December 31, 2025 still locks in the old rate for that tax year.
Leased systems and power purchase agreements were never eligible for the homeowner-side 25D credit in the first place, since 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 there's nothing for you to personally claim either way.
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 their own system. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, ended the 25D residential clean energy credit early — it dropped straight 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?
Leases and power purchase agreements (PPAs) are owned by the solar company, not you, so you were never the one claiming the 25D homeowner credit in the first place. The company may still claim a separate commercial credit (Section 48E) and typically bakes that value into your lease/PPA pricing — but there's no personal tax credit for you to lose, since you never had one.
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 yet filed for the credit, you may still be able to claim 30% on that tax year's return — confirm with a tax professional, since amended-return deadlines apply.
This tool provides an educational estimate only and is not tax advice. Tax credit eligibility depends on your specific filing situation, system documentation, and IRS rules current at the time you file — confirm your eligibility with a licensed tax professional before relying on any figure here.