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Residential Clean Energy Credit (Section 25D)

Internal Revenue Service

expiring federal

About This Program

Federal tax credit equal to 30% of costs for solar panels, solar water heating, geothermal heat pumps, small wind turbines, fuel cells, and battery storage. No annual or lifetime dollar cap. Repealed for expenditures after 2025; unused credits may carry forward.

30% of all qualifying costs; nonrefundable but carryforward allowed; EXPIRES end of 2025

Key Details

  • 30% tax credit on solar, geothermal, wind, and battery costs
  • No annual or lifetime dollar cap on the credit
  • EXPIRES December 31, 2025 — act now
  • Nonrefundable credit; unused amounts carry forward
  • File IRS Form 5695 with your tax return

How to Apply

Deadline: Property must be placed in service by December 31, 2025

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