IRA Residential Clean Energy Credit (25D)

About This Program

The IRA's Residential Clean Energy Credit provides a 30% federal tax credit with no cap for qualifying solar panels, geothermal heat pumps, battery storage systems, and solar water heaters installed in a primary residence. The credit is nonrefundable but can be carried forward. Alabama homeowners can combine this credit with Alabama Power rebates for maximum savings.

30% of total project cost; no dollar cap; can combine with utility rebates.

Key Details

• 30% tax credit on solar panels, geothermal, and battery storage
• No annual dollar cap (unlike the 25C improvement credit)
• Must have federal tax liability; nonrefundable but carryforward allowed
• Can be combined with Alabama Power rebates
• Active through 2034; claim on IRS Form 5695

How to Apply

Deadline: Annual; claim on federal tax return through 2034