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Solar Tax Credit Carryforward Calculator
Work out the federal solar tax credit, the carryforward and what you pay after it.
Your result
Enter your numbers and press the button. Your result appears here.
If your 2025 credit is larger than your tax, the unused part carries forward to later years. Enter your yearly federal income tax.
How it works
Credit = 30% × (system cost − utility rebates), for systems installed by December 31, 2025. Unused credit carries forward.
Example: a $30,000 system installed in 2025 earns a $9,000 credit.
At a glance
Same settings as the calculator, changing only the yearly tax.
| Yearly tax | Credit (2025) | After credit | Years to use |
|---|---|---|---|
| $1,000 | $9,000 | $21,000 | 9 |
| $2,000 | $9,000 | $21,000 | 5 |
| $3,000 | $9,000 | $21,000 | 3 |
| $5,000 | $9,000 | $21,000 | 2 |
| $9,000 | $9,000 | $21,000 | 1 |
Federal solar incentives in 2026
| Credit | Who claims it | Status |
|---|---|---|
| Residential Clean Energy Credit (25D), 30% | Homeowner who buys the system | Ended for systems installed after December 31, 2025 |
| Clean Electricity Investment Credit (48E) | Owner of a leased or PPA system (the installer or financier) | Available for qualifying projects under the 2025 budget law's deadlines |
The One Big Beautiful Bill Act, signed July 4, 2025, ended 25D early. State and utility incentives are separate.
Common questions
Can I still claim the solar tax credit?
Only for systems installed by December 31, 2025, claimed on Form 5695 for that tax year. Systems installed in 2026 do not qualify.
What if my credit is bigger than my tax?
The unused part carries forward to the next tax year.
What about leased solar?
The installer or leasing company may claim the 48E business credit and pass some of the benefit through in lower payments.
Sources
- IRS, Residential Clean Energy Credit: https://www.irs.gov/credits-deductions/residential-clean-energy-credit
- IRS, Clean Electricity Investment Credit (48E): https://www.irs.gov/credits-deductions/clean-electricity-investment-credit