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๐ก Solar Tax Credit at Risk: Why Homeowners Should Act Now
๐ก Solar Tax Credit at Risk: Why Homeowners Should Act Now
If you’ve been considering solar panels or other clean energy upgrades, 2025 may be your last chance to take full advantage of the 30% Residential Clean Energy Credit (RCEC).
๐ Whatโs the RCEC?
The RCEC is a federal non-refundable tax credit that covers 30% of the cost of:
- Solar electric panels
- Solar water heaters
- Geothermal heat pumps
- Small wind energy systems
It applies to primary homes, second homes, and even rental properties you occupy. (Note: purely investment properties do not qualify.)
โ ๏ธ Whatโs Changing?
Although current law preserves the 30% credit through 2032, new legislation could wipe it out early:
- The One Big Beautiful Bill Act in H.R. would eliminate the credit for systems installed after December 31, 2025.
- The Senate passed OBBBA version also terminates the RCEC beginning in 2026.
Bottom line: Donโt count on the 2032 timeline.
โณ Why Timing Matters
The installation processโdesign, permitting, installation, inspectionโcan take months. To qualify, your system must be in service by December 31, 2025.
Even though the credit is non-refundable, you can carry forward any unused portion to future tax years.
๐ If youโre weighing the benefits of going solar, now is the time to act.
The tax credit could disappear much sooner than most expect. Reach out if you’d like help navigating your options.
#CleanEnergy #TaxCredits #SolarPower #HomeUpgrades #GreenEnergy #TaxPlanning #RCEC #Sustainability #FinancialPlanning