Federal Residential Clean Energy Tax Credit (25D)

About This Program

The federal 25D Residential Clean Energy Credit provides a 30% tax credit with no dollar cap for qualifying renewable energy installations including solar panels, solar water heaters, battery storage systems, geothermal heat pumps, and small wind turbines. The credit has no upper limit and excess can be carried forward to future tax years. The 30% rate applies through 2032.

Example: $20,000 solar installation yields $6,000 tax credit

Key Details

• 30% federal tax credit – no maximum dollar cap
• Applies to solar panels, solar water heaters, battery storage, and geothermal
• Excess credit carries forward to future tax years
• 30% rate in effect through 2032
• Claim on IRS Form 5695 with your annual federal return

How to Apply

Deadline: Annual – claim on federal tax return for the year system is placed in service