In July 2025, Congress passed the “One Big Beautiful Bill” (OBBB), which terminates the 30% residential solar tax credit (Section 25D) for expenditures made after December 31, 2025.
That means homeowners must have their solar systems installed, operational, and “placed in service” by the end of 2025 to qualify for the credit.
After 2025, the residential credit effectively ends (unless future legislation changes things).
Keep in mind that the tax credit can only be claimed by the property owner who owns the solar energy system. If you have any questions about claiming the federal solar tax credit, it’s best to consult with a tax professional or financial advisor,” shared Daniel Ahart, chief tax officer at the tax preparation company Daniel Ahart Tax Service®.
What Is Still Possible
- For commercial solar projects, the rules are more complex: projects must begin construction by July 4, 2026 or else meet certain in-service deadlines (e.g. by December 31, 2027) to qualify under the updated 48E / ITC framework.
- Some leasing / third-party ownership (PPA) arrangements (Section 48E) may still have eligibility through 2027, depending on timing and structure.
Answer to Your Question
So yes — you’re correct in thinking the credit is ending soon. Under current law:
- The residential solar tax credit ends December 31, 2025.
- It does not automatically extend into 2026 under present rules, so 2025 is effectively the last year to qualify.
- After that, unless Congress acts, there’s no residential ITC for systems installed in 2026 or later.
It is very important to take a moment to remember your own history during the year, in this way we reduce the risk of forgetting anything that needs to be reported on your tax return.
Remember that every person and every tax return is different, this is just a guide, please find the closest DATS location near you and do not hesitate to contact us. Daniel Ahart Tax Service will be open and ready to answer the phone or in person to clarify any doubts and to be able to guide you in the process,” explains Daniel Ahart, chief tax officer at the tax preparation company Daniel Ahart Tax Service®
Taking Care of your Crypto Taxes
Also, remember that if you have any crypto tax obligations for the 2025 tax year, you need to report it. Join the thousands of individuals in the State of Georgia that trust their taxes to Daniel Ahart each year!
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