Status: September 25, 2026. This article reports the law as it stands today — solar tax articles rot fast, so we date ours. The short version: the 30% residential solar credit is over for new installations. If you’re buying a rooftop system with cash or a loan now, the federal personal credit is $0. Here’s exactly what happened, who can still claim, and what’s actually left.

What ended on December 31, 2025

The Inflation Reduction Act of 2022 had extended the §25D Residential Clean Energy Credit — 30% of installed cost, no dollar cap — through 2034, with a step-down to 26% in 2033 and 22% in 2034. That sunset is why so many solar sites still promise “30% through 2032.”

The One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) replaced that glide path with a cliff: §25D “shall not apply with respect to any expenditures made after December 31, 2025.” No phase-down, no transition period — nine years of scheduled credit ended at once.

The detail that catches people: when an expenditure counts as made. Per the statute and IRS guidance (FS-2025-05), an expenditure is made when the original installation is completed — not when you sign the contract, not when you pay the deposit. A system paid for in November 2025 but installed in January 2026 is a 2026 expenditure: no credit.

Who can still claim a federal credit

A narrow, shrinking set — but a real one:

• Systems completed by December 31, 2025. Claim 30% on your 2025 Form 5695 (the return filed in early 2026). The credit is nonrefundable, but unused amounts carry forward to future years indefinitely — a $9,000 credit against a $6,000 tax bill isn’t lost, it rolls.
• Third-party-owned systems via §48E — open through 2027. The commercial Clean Electricity Investment Credit survives for solar facilities placed in service by December 31, 2027, whatever their construction start — and beyond that date only for projects that began construction within 12 months of enactment (roughly July 4, 2026). In practice: a lease/PPA provider installing your roof before the end of 2027 can still claim the 30% commercial credit and bake its value into your payments — subject to the new FEOC “material assistance” restrictions that complicate post-2025 construction starts. That makes third-party ownership the one remaining path to federal credit value, on a hard-dated clock.
• Business-use property (a rental, a commercial roof) follows §48E’s rules, not §25D’s — the same placed-in-service-by-2027 window applies.

If a sales rep in late 2026 says “you’ll get 30% back from the federal government,” ask which section of which law, in writing. For a homeowner-owned system there is no correct answer — that’s a red flag, not a loophole.

What actually remains for buyers now

The federal homeowner credit was always the biggest single incentive — but it was never the only one, and the ones that remain are real money:

• State tax credits. New York offers 25% up to $5,000; several other states have credits or subtraction provisions. Rules shift — verify on DSIRE before banking one.
• Utility rebates. Still live in scattered territories (a few hundred to a few thousand dollars), usually first-come.
• SREC income. In markets that still trade Solar Renewable Energy Certificates — NJ, MA, DC, MD, PA, OH among them — each ~1,000 kWh you generate sells for anywhere from a few dollars to a few hundred, for years. This is production income, not a credit, and it’s one reason paybacks in mid-Atlantic states beat sunnier neighbors.
• Property- and sales-tax exemptions. Most states exempt the added home value from property tax; ~half waive sales tax on equipment. That’s worth $1,000–2,000+ on a typical job against a no-exemption baseline.
• Net metering / export rates. Not an “incentive” in the legal sense, but the biggest driver of real payback — a 1:1 retail net-metering tariff is worth more than many rebates. It’s also shrinking in places (California’s NEM 3.0 pays avoided-cost rates), which is why the calculator exposes the offset slider.

How to model honestly now

In the calculator above, the federal-credit selector defaults to none — the correct answer for any install completed in 2026 or later. The 30% option exists for two legitimate cases: checking a completed-2025 system’s economics, and sanity-checking proposals that still assume the old credit. If you model both ways, watch what it does to payback — on a $21,672 system it’s a $6,502 swing, roughly two and a half years of payback. That gap is exactly why getting this question right matters more than getting panel watts right.

One honest hedge, then we’re done: tax law changes, and proposals to restore residential clean-energy credits are already circulating. As of the date stamped above, none is law. If it’s well past September 2026 when you read this, check IRS.gov and DSIRE before trusting this page — we update ours, but so should your sources.

Frequently asked questions

Can I still get the 30% solar tax credit if I install panels in 2026?

No — not for a system you own. Section 25D terminated for expenditures made after December 31, 2025, and the IRS counts the expenditure as made when the installation is completed, not when you sign or pay. A 2026 homeowner-owned install earns $0 in personal federal credit, full stop.

I paid a deposit in 2025 but installation finished in January 2026 — do I qualify?

Almost certainly not. Per IRS guidance on §25D(e)(8), the expenditure is treated as made when original installation is completed. Payment date doesn't control; completion date does. Contracts and deposits from 2025 don't rescue a 2026 completion.

My system was installed in 2025 — what do I do now?

Claim the 30% credit on your 2025 federal return (filed in 2026) via Form 5695. It's nonrefundable, but any amount that exceeds your 2025 tax liability carries forward indefinitely — you don't lose it.

Why do lease and PPA offers still mention a federal credit?

Because a different credit still exists on the commercial side. The §48E Clean Electricity Investment Credit covers third-party-owned systems (leases, PPAs): solar facilities qualify if placed in service by December 31, 2027 — any construction start — and after that only if construction began within 12 months of OBBBA's enactment (~July 4, 2026). The provider claims it and passes value through as lower payments, though new FEOC 'material assistance' rules now complicate post-2025 construction starts. So the pass-through is real through 2027 — then it dies too.

What incentives are left for a cash or loan purchase?

State and local programs: state tax credits (e.g., NY's 25% up to $5,000 — verify current rules), utility rebates, SREC income in a handful of markets, property- and sales-tax exemptions in most states, and net metering value. The federal homeowner credit is gone, but these were always the second layer — check DSIRE (dsireusa.org) for your address.

Could Congress bring the credit back?

Legislation to restore or extend residential clean-energy credits has been proposed. As of September 25, 2026, none has become law — model your purchase on the statute that exists. This page is dated; if you're reading it long after mid-2026, re-check IRS.gov rather than trusting us or anyone else's stale article.