Federal Residential Clean Energy Credit (25D)

About This Program

The 25D Residential Clean Energy Credit provides a 30% nonrefundable federal income tax credit for qualified clean energy installations including solar panels, battery storage, geothermal heat pumps, small wind turbines, and fuel cells installed through December 31, 2025. The credit was terminated for residential ownership after Dec 31, 2025, by the One Big Beautiful Bill signed July 4, 2025. Unused credit can be carried forward to future tax years. For 2026 solar, explore lease/PPA options that may still qualify under business credits.

Claim on IRS Form 5695. Credit is nonrefundable — reduces tax owed but not below zero. Carry forward excess to future years. Solar credit for residential ownership expired Dec 31, 2025.

Key Details

• 30% federal tax credit for solar, battery, geothermal, wind installations
• No dollar cap except for fuel cell property
• Credit expired for residential ownership after December 31, 2025
• Nonrefundable — unused credit carries forward to future tax years
• Claim on IRS Form 5695 when filing 2025 taxes

How to Apply

Deadline: December 31, 2025 — credit sunsets after this date per One Big Beautiful Bill (signed July 4, 2025)