ITC 30% Federal Tax Credit 2025 Deadline

Important Information Regarding the Federal Solar Tax Credit

As part of ongoing federal budget discussions, the 30% Federal Residential Solar Tax Credit

(ITC) is currently under review and may be eliminated in future legislation. Several proposals

have included a full cut of the current 30% incentive.

This federal credit has played a major role in making solar more financially accessible for

homeowners. It allows households to deduct 30% of their total solar and backup battery

installation costs directly from their federal tax liability—an incentive that can amount to tens

of thousands in savings for some projects.

Federal Deadline: Projects Must Be Fully Installed by December 31, 2025

Under current guidelines, to receive the full 30% Federal Solar Tax Credit, your solar system

must be fully installed and operational by the end of 2025.

That means:

• Permitting, utility approval, and installation must all be completed.

• Partial or delayed installations that stretch into 2026 may not qualify for the full credit if

  changes to the policy go into effect.

Given the time required for design, permitting, and installation, it’s important to keep this

deadline in mind when considering your project timeline. The closer we get to the cutoff, the

more scheduling and supply chain constraints tend to increase—especially if demand rises due

to policy changes.

What This Means for You...

If going solar is already on your radar, it may be worth reviewing your options to ensure you’re

positioned to take full advantage of the current federal incentive. Our goal is simply to keep you

informed so you can make the most well-timed decision for your home and finances. We’re

here to help answer any questions and guide you through the process.