Inflation Reduction Act: Solar tax credit

Rebate Overview

Overview

The Inflation Reduction Act offers a 30% tax credit for homeowners installing solar panels and battery backup systems of 3 kilowatt hours or more. This means you can deduct 30% of your installation costs from your federal taxes. Upgrades completed in 2025 and tax credits claimed for those projects on 2025 tax returns (filed in early 2026) should be safe.

Benefits

Installing solar panels can lower your energy bills and increase your home's value. Adding battery storage ensures you have power during outages. These upgrades also help reduce pollution, making the environment cleaner for everyone.

More Information

• The 30% tax credit applies to both solar panels and battery storage systems.
• The credit is available for installations completed between 2022 and 2032.
• To claim the credit, file IRS Form 5695 with your tax return.
• The credit amount decreases to 26% in 2033 and 22% in 2034.
• In low-income or energy communities, additional bonuses may be available through community solar and leased rooftop solar models.

Details

• Expiration date: December 31, 2034
• Incentive type: Tax Credit
• Maximum Percent: 30%
• Category: Solar Array
• Link: More details

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