CleverHomeEnergy
Policy Update2025-05-12

IRA Solar Tax Credit Extended: How to Claim Your 30% in 2025

The Inflation Reduction Act solar tax credit remains at 30% through 2032. Here's exactly how to claim it on your 2025 taxes.

The 30% federal solar Investment Tax Credit (ITC) — extended by the Inflation Reduction Act — remains one of the most valuable incentives available to American homeowners in 2025.

What the Credit Covers

The ITC applies to 30% of the total system cost, including:

  • Solar panels
  • Labor and installation
  • Inverters and battery storage
  • Permitting fees

If your system costs $20,000, you receive a $6,000 tax credit — directly reducing your federal tax bill.

How to Claim It

  1. Install a qualifying solar energy system at your primary or secondary residence
  2. File IRS Form 5695 with your tax return
  3. Enter the credit on Schedule 3 of Form 1040

The credit is non-refundable — it can reduce your tax liability to zero, but you won't receive a check for any excess. However, unused credit rolls over to the next tax year.

Key Deadlines

| Year | Credit Amount | |------|--------------| | 2022–2032 | 30% | | 2033 | 26% | | 2034 | 22% | | 2035+ | 0% (residential) |

Does It Stack With State Incentives?

Yes. The federal ITC is separate from state-level rebates and utility incentives. In states like California, Massachusetts, and New York, total incentives can reduce system costs by 50% or more.

Does This Apply to Your ZIP Code?

Check if the rebates and programs mentioned in this article are available in your area.

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