Guide OverviewChapter 4 · Federal Incentives in 2026 — The Real Picture
Chapter 4 · Federal Incentives in 2026 — The Real Picture

4.2 If you placed in service before the 2025 deadline

  • File on IRS Form 5695 for the tax year of interconnection.
  • The credit = 30% of all reasonable system costs (equipment, labor, sales tax, permit fees, and structural reinforcement directly related to the install).
  • If your federal tax liability for that year isn't enough to absorb the credit, the excess carries forward — but only if you were placed in service before 2025-12-31.
  • The credit has no income cap, but you must have federal tax liability to apply it against.
  • You must own the system (Cash or Loan both qualify; Lease / PPA homeowners do not).
Next Step

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