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Section 25D expired December 31, 2025. If you buy solar with cash or a loan in 2026, you get $0 in federal tax credits. Here's what still works.
Important: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act. This page reflects current 2026 policy.
Homeowners received a 30% federal tax credit (Section 25D) on the full cost of a solar system. A $30,000 system meant $9,000 back on your taxes.
Section 25D was repealed by the One Big Beautiful Bill Act (OBBBA). Homeowners who purchase solar with cash or a loan get $0 federal tax credit.
Third-party owned systems (lease/PPA) still qualify for 30% under Section 48/48E. The installer claims the credit and passes savings to you through lower monthly payments.
While the federal credit is gone, several states still offer meaningful incentives. Here's what's available for an 8kW system in each state.
| State | Incentive Rate | Max Amount | 8kW Example |
|---|---|---|---|
| New Jersey | $0.90/W | $15,000 | $7,200 |
| Rhode Island | $0.35/W | $7,000 | $2,800 |
| Connecticut | $0.25/W | $6,000 | $2,000 |
| New York | $0.20/W | $5,000 | $1,600 |
| Vermont | $0.10/W | $3,500 | $800 |
| Pennsylvania | $0.05/W | $5,000 | $400 |
| Massachusetts | $0.04/W | $10,000 | $320 |
| New Hampshire | — | — | No state incentive |
| Maine | — | — | No state incentive |
| Texas | — | — | No state incentive |
| Georgia | — | — | No state incentive |
$0.90/W up to $15,000
$0.35/W up to $7,000
$0.25/W up to $6,000
$0.20/W up to $5,000
$0.10/W up to $3,500
$0.05/W up to $5,000
$0.04/W up to $10,000
States like NJ, RI, CT, and NY still offer per-watt incentives that can offset 10–25% of your system cost.
See your stateLease and PPA installers still claim the 30% ITC under Section 48/48E, passing savings to you through lower monthly payments — $0 down.
Compare lease vs. buyMost states still allow you to sell excess solar power back to the grid, offsetting your electric bill and accelerating payback.
See payback analysisUnlike residential, commercial solar systems still qualify for the full Investment Tax Credit under Section 48/48E: 30% base + 10% domestic content + 10% energy community + 10–20% low-income bonus.
Explore Commercial SolarGet a free, personalized quote that includes all available state incentives and financing options — no federal credit needed.