2025 - The Last Year to Claim the Solar Tax Credit

If you're considering an investment in solar panels or other renewable energy upgrades, 2025 will be your last chance to take full advantage of the 30% Residential Clean Energy Credit (RCEC).

What Is the RCEC?

The RCEC is a federal, non-refundable tax credit equal to 30% of the cost of qualified energy systems, including:

• solar electric panels

• solar water heaters

• geothermal heat pumps

• small wind energy systems

Eligible properties include primary and secondary residences, as well as rentals occupied by the taxpayer. Landlords who do not reside in the property are not eligible.

What Changed?

Previous to July 4th, 2025, the RCEC remained at 30% through 2032, with step-downs in 2033 and 2034, and full expiration after 2034. However, with the new bill that passed, the expiration has moved up to December 31, 2025.

Why Act Now?

Installation takes time. From selecting a system to full installation and inspection, the entire process can span months. To qualify for the credit on your 2025 tax return, you must place your system in service by December 31, 2025.

Additionally, the RCEC is non-refundable, meaning that unused credits can carry forward to future tax years.

If you want to discuss more about this, please submit your information here and we will be in touch.

To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Seek advice based on your particular circumstances from an independent advisor.