25D: Solar Tax Credit
Save money when upgrading to an energy-efficient solar array with a tax credit from the federal government.
Rebate Overview
Overview
The 25D Solar Tax Credit is a federal tax incentive that allows homeowners to deduct 30% of the cost of installing solar energy systems from their federal taxes. However, this credit is set to expire on December 31, 2025. To take advantage of this benefit, ensure your solar system is installed and operational by this date. Upgrades completed before the cutoff can be claimed as a credit using Form 5695 on your 2025 tax return, filed in early 2026.
Benefits
Installing solar panels can make your home more energy-efficient and comfortable. It can also increase your home's value and reduce your electricity bills. Additionally, using solar energy helps reduce pollution from gas appliances, benefiting the environment.
More Information
- To qualify for the 25D Solar Tax Credit, your solar system must be installed and operational by December 31, 2025.
- After installation, you can claim the credit using Form 5695 on your 2025 tax return, filed in early 2026.
- Ensure that your solar system meets all federal requirements to be eligible for the credit.
Details
- Expiration date: December 31, 2025
- Incentive type: Tax Credit
- Maximum Percent: 30%
- Category: Solar Array
- Link: More details
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