Investment Tax Credit (ITC)
The federal Investment Tax Credit for solar — now available only through the commercial Section 48E pathway after the residential 25D credit expired in 2025.
The Investment Tax Credit (ITC) is the umbrella federal incentive that lets the owner of a solar system deduct a percentage of its cost from their taxes. Historically homeowners claimed it directly through Section 25D.
In 2026 the landscape split: the residential 25D credit expired at the end of 2025, so cash and loan buyers get nothing, while the commercial Section 48E credit lives on for businesses. That's why a leasing or PPA company — which owns the panels and claims 48E — can still pass federal-credit value to homeowners.
Put it to work
See also