{"id":51,"date":"2023-12-18T15:33:00","date_gmt":"2023-12-18T15:33:00","guid":{"rendered":"https:\/\/switchtogether.com\/en\/solar\/blog\/?p=51"},"modified":"2025-08-15T10:33:43","modified_gmt":"2025-08-15T10:33:43","slug":"inflation-reduction-act-solar-panels","status":"publish","type":"post","link":"https:\/\/switchtogether.com\/en\/solar\/blog\/inflation-reduction-act-solar-panels\/","title":{"rendered":"The Solar Tax Credit is Expiring After 2025\u00a0"},"content":{"rendered":"\n<p style=\"font-size:17px;letter-spacing:1px\">If you&#8217;re a homeowner and have been thinking about going solar, now may be the best time. If you install your system by December 31, 2025, you could acquire one of the biggest solar incentives in American history.<\/p>\n\n\n\n<!-- Google Fonts: Poppins -->\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Poppins:wght@400;600&#038;display=swap\" rel=\"stylesheet\">\n\n<style>\n  body {\n    font-family: 'Poppins', sans-serif;\n  }\n\n  \/* Yellow background container *\/\n  .background--yellow {\n    background-color: #FFD34E; \/* approximate from screenshot *\/\n    padding: 2rem;\n    border-radius: 0.5rem;\n    text-align: center;\n    color: #0C0C09; \/* text color *\/\n  }\n\n  \/* Header text inside container *\/\n  .cta-header {\n    font-size: 1.5rem;\n    font-weight: 600;\n    margin-bottom: 1rem;\n    color: #0C0C09;\n  }\n\n  \/* Green CTA button *\/\n  .cta-btn {\n    background-color: #28a745; \/* green *\/\n    color: #fff; \/* white button text *\/\n    padding: 0.85rem 2.5rem;\n    font-size: 1.125rem;\n    font-weight: 600;\n    border-radius: 0.5rem;\n    border: none;\n    cursor: pointer;\n    display: inline-flex;\n    align-items: center;\n    justify-content: center;\n    transition: background-color 0.2s ease, transform 0.1s ease;\n    text-decoration: none; \/* keep as link *\/\n    font-family: 'Poppins', sans-serif;\n  }\n\n  .cta-btn i {\n    margin-left: 0.5rem;\n  }\n\n  .cta-btn:hover {\n    background-color: #218838;\n  }\n\n  .cta-btn:active {\n    transform: scale(0.98);\n  }\n<\/style>\n\n<div class=\"container background--yellow\">\n  <h2 class=\"cta-header\">Join Switch Together for free and without obligation<\/h2>\n  \n  <!-- Change the href value below to your desired link -->\n  <a href=\"https:\/\/switchtogether.com\/en\/solar\" class=\"cta-btn\">\n    Get a solar quote\n    <i class=\"bi bi-chevron-right\"><\/i>\n  <\/a>\n<\/div>\n\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-medium-font-size\" style=\"color:#225530;font-style:normal;font-weight:600\"><strong><strong><strong>The One Big Beautiful Bill&nbsp;<\/strong><\/strong><\/strong><\/h3>\n\n\n\n<p style=\"font-size:17px;letter-spacing:1px\">On July 4, 2025, the One Big Beautiful Bill was signed into law, officially ending the federal solar tax credit for homeowners after <strong>December 31, 2025.<\/strong><\/p>\n\n\n\n<p style=\"font-size:17px;letter-spacing:1px\">The solar tax credit has been one of the most effective tools for driving adoption of renewable energy in the U.S. It has already helped millions of homeowners lower upfront costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-medium-font-size\" style=\"color:#225530;font-style:normal;font-weight:600\"><strong><strong><strong><strong>What is the Solar Tax Credit?&nbsp;<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p style=\"font-size:17px;letter-spacing:1px\">Established under the Inflation Reduction Act, this tax credit currently allows homeowners to claim 30% of the total cost of their solar installation. This incentive has played a major role in reducing the upfront cost of solar for households nationwide.<\/p>\n\n\n\n<p style=\"font-size:17px;letter-spacing:1px\">The solar tax credit is a tax credit that can be claimed on federal income taxes at a percentage of the total cost of a solar installation, including equipment and labor.&nbsp;<\/p>\n\n\n\n<p style=\"font-size:17px;letter-spacing:1px\">This tax credit is regarded as the most valuable incentive you can claim because it saves you thousands of dollars in the form of a 30% tax credit and there\u2019s no limit to the amount you can claim.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-medium-font-size\" style=\"color:#225530;font-style:normal;font-weight:600\"><strong>What is a Tax Credit?<\/strong><\/h2>\n\n\n\n<p style=\"font-size:17px;letter-spacing:1px\">A tax credit is a dollar for dollar reduction in the amount of income tax you owe. For example, claiming a $1,000 federal tax credit reduces your federal income taxes due by $1,000.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-medium-font-size\" style=\"color:#225530;font-style:normal;font-weight:600\"><strong>How do I Determine if I&#8217;m Eligible for the Tax Credit?&nbsp;<\/strong><\/h2>\n\n\n\n<p style=\"font-size:17px;letter-spacing:1px\"><strong>30% Federal Credit<\/strong> \u2013 Claim 30% of the cost of a new solar energy system that is installed by December 31, 2025.<\/p>\n\n\n\n<p style=\"font-size:17px;letter-spacing:1px\"><strong>Eligible Homes <\/strong>\u2013 Applies to your main home or a second home you live in; rentals where you don\u2019t live don\u2019t qualify.<strong>You Must Own It<\/strong> \u2013 Only systems you purchase (not lease) are eligible; equipment must be new.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-medium-font-size\" style=\"color:#225530;font-style:normal;font-weight:600\"><strong>What do I Need to do to Qualify for the Tax Credit This Year?&nbsp;<\/strong><\/h2>\n\n\n\n<p style=\"font-size:17px;letter-spacing:1px\">The new law requires that qualifying systems have \u201cexpenditures made\u201d no later than December 31, 2025 \u2014 a shift from the previous \u201cplaced in service\u201d requirement. Because statutes and tax guidance can define \u201cexpenditures made\u201d in specific and sometimes technical ways, we recommend speaking with your tax advisor to understand how this change affects you and what records you should keep to prove you meet the deadline.&nbsp;<\/p>\n\n\n\n<p style=\"font-size:17px;letter-spacing:1px\">Switch Together recommends contacting your solar installer as soon as possible to maximize your chances of securing the federal solar tax credit before it expires. The safest strategy is to have your system fully installed and generating electricity by December 31, 2025. Keep in mind that most projects take 60 to 90 days from initial design to final connection.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you&#8217;re a homeowner and have been thinking about going solar, now may be the best time. If you install your system by December 31, 2025, you could acquire one of the biggest solar incentives in American history. Join Switch Together for free and without obligation Get a solar quote The One Big Beautiful Bill&nbsp;&#8230;<\/p>\n","protected":false},"author":4,"featured_media":359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"[]"},"categories":[7],"tags":[20],"class_list":["post-51","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solar-pv","tag-tax-credit"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Solar Tax Credit is Expiring After 2025\u00a0 - Switch Together Blog<\/title>\n<meta name=\"description\" content=\"The 30% federal solar tax credit ends after Dec. 31, 2025 under the One Big Beautiful Bill. 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