The residential 45D 30% tax credit will no longer be available after December 31, 2025.

For commercial federal tax credits, many curtailments were created by the oil industry’s paid politicians to now sunset the 30% federal tax credit for commercial entities. This program, which has greatly supported renewable energy adoption across the United States, will now go away on December 31, 2027.

To secure the solar Investment Tax Credit (ITC) for a 2026 project at 30%, you must begin construction by July 4, 2026, or place it in service by December 31, 2027 while utilizing equipment that best navigates the new Foreign Entity of Concern (FEOC) rules for the major components (inverters, solar modules and racking) and ensuring robust documentation for compliance. Early engagement with experienced tax counsel and our office team is critical for meeting these tight deadlines in order to secure the maximum tax credit amount available to you.

The credit amount will be available to you when you file your tax return for the year the installation is completed. If you cannot use the full tax credit that year, it can carry forward to subsequent years. We recommend contacting your tax professional to discuss how the FITC can impact your projected tax situation for a specific year.

Learn more about the federal rebate for homeowners and for businesses.

If you are considering a solar project for a business, an accelerated depreciation schedule (MACRS) may be applied to your solar electric system purchase. Energy Design will work with your accountant to articulate the distribution of MACRS and the impact it will have on your tax situation.