![\"Solar](\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2018\/01\/shutterstock_737425927.jpg\")
<\/figure><\/div>\n\n\nSpecifically, solar investment tax credits, or Solar ITCs, were repealed by the One Big Beautiful Bill Act (OBBBA)<\/a> and are only available through December 31, 2025.<\/p>\n\n\n\n Note: In addition to the solar energy credits, all residential energy credits, EV tax credits, and alternative fuel refueling credits were eliminated under OBBBA. EV tax credit is available for vehicles purchased before Sept. 30, 2025. Residential energy credits are available through Dec. 31, 2025, and refueling property credits are available until June 30, 2026.<\/p>\n\n\n\n If you\u2019ve made eligible upgrades this year and need to understand the details for your taxes, you\u2019ve come to the right place. Learn more about the benefits of this federal tax credit and how to claim this residential clean energy credit on your taxes in this post.<\/p>\n\n\n\n The Residential Clean Credit (formerly called the Residential Energy Efficient Property credit, or \u201cREEP\u201d) helps lower your tax bill if you install solar roofing tiles or shingles. Aside from the environmental benefits of residential solar power\u2014like reducing pollution, avoiding fossil fuels, and reducing your family\u2019s carbon footprint\u2014solar energy also has a tax benefit.<\/p>\n\n\n\n The downside is that it\u2019s expensive to install a solar panel. Thankfully, this federal solar tax credit can offset some of the expense.<\/p>\n\n\n\n Generally, if you install renewable energy equipment on your property, you qualify for a percentage credit off the total cost of your solar system.<\/p>\n\n\n\n If you\u2019re wondering what the solar tax credit is and when you can use it, look no further. The credit amount is determined by the date you installed the equipment.<\/p>\n\n\n\n Solar customers can claim:<\/p>\n\n\n\n Note: This federal tax credit, as part of the REEP credit, applies to tax years 2017 through 2025.<\/p>\n\n\n\n This is not a refundable credit. In other words, if your solar tax credit was larger than your income tax due, the difference will not be paid back to you as a refund.<\/p>\n\n\n\n As a reminder, tax credits work like this: you can offset your overall taxable income by subtracting the amount from your tax liability. Learn more about tax credits<\/a>.<\/p>\n\n\n\n Not all property qualifies for the federal solar tax credit. To be eligible, your property must be part of a cooperative apartment, condominium, house, houseboat, mobile home, or manufactured home approved by the Federal Manufactured Home Construction and Safety Standards.<\/p>\n\n\n\n You must also have qualified solar equipment. Here is the list of qualified solar equipment and other property that is eligible for the REEP:<\/p>\n\n\n\n *Note: Leased solar energy systems don\u2019t qualify for the solar tax credit.<\/p>\n\n\n\n While you can\u2019t claim the federal solar energy credit on rental properties you own and rent out for 80% or more of the year, you can claim it for properties you live in for part of the year. The percentage you claim is reduced based on the months you live there.<\/p>\n\n\n\n For example, if you install qualifying solar equipment at a property you live in for half the year in 2025, you can deduct 50% of the 30% credit for the total cost of the solar equipment. So, if your solar system cost $20,000 in 2025, the full credit is $6,000, but you can only claim half of that\u2014so the amount is $3,000.<\/p>\n\n\n\n Use Part 1 of Form 5695 to determine your credit amount. There are two parts on a Form 5695.<\/p>\n\n\n\n Part 1:<\/strong><\/p>\n\n\n\n The first part of the form is for the REEP. Enter the amount you spent on qualifying solar energy materials or installation or other qualifying equipment. On line 14, you should enter your credit limit, which is determined by your tax liability. On line 15, follow the instructions to enter the credit amount on Form 1040<\/a>.<\/p>\n\n\n\n Part 2:<\/strong><\/p>\n\n\n\n The second part of Form 5695 is for the Nonbusiness Energy Property Credit. This section is for the costs of heating and cooling-related home improvements you made to your property, such as new windows and insulation. Line 30 will be the number you add to your Form 1040. The maximum lifetime nonbusiness energy property credit is $500<\/strong>. Learn more about energy efficient tax credits<\/a>.<\/p>\n\n\n\n If you didn\u2019t realize there was a federal tax credit when installing solar energy property and didn\u2019t claim the solar tax credit on a previous tax return, we have good news. You can amend your return<\/a> (for up to three years) with the Internal Revenue Service (IRS) to claim this valuable residential energy credit. If the credit is more than your tax liability for that year, you can claim the solar tax credit balance for the following tax year until tax year 2025.<\/p>\n\n\n\n Claiming credits can be complex, which is why we\u2019re here to help! Whether you make an appointment<\/a> with one of our knowledgeable tax pros or choose one of our online tax filing<\/a> products, you can count on H&R Block to navigate all your tax deductions and credits.<\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019re in the market to make solar PV (photovoltaic) upgrades to your home, you may know a bit about solar tax credits. And, you may know that this credit will soon no longer be available. Specifically, solar investment tax credits, or Solar ITCs, were repealed by the One Big Beautiful Bill Act (OBBBA) and […]<\/p>\n","protected":false},"author":406,"featured_media":61647,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[26,4783,23342,23343,23349],"tags":[],"class_list":["post-33169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","category-financial-education","category-life-stages","category-home","category-whats-new"],"acf":[],"yoast_head":"Federal solar tax credit benefits<\/h2>\n\n\n\n
File with H&R Block to get your max refund<\/h3>
How does the solar tax credit work?<\/h2>\n\n\n\n
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Solar energy tax credit qualifications<\/h2>\n\n\n\n
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What about claiming solar panel equipment on rental property you own?<\/h3>\n\n\n\n
How to claim the solar tax credit on your taxes<\/h2>\n\n\n\n
Amending your return to claim a solar panel tax credit<\/h2>\n\n\n\n
Get help with the solar panel tax credit<\/h2>\n\n\n\n