2025 USA Solar Incentives Homeowners Can Still Claim
In this guide, we''ll break down the updated federal solar tax credits and highlight some top state-level incentives for homeowners. Plus, we''ll walk you through how to claim these incentives so
Tax credits and rebates make solar more affordable in different ways. A tax credit is claimed when you file your tax returns, while a rebate is a partial refund you get after buying solar panels. These are dollar-for-dollar reductions in the income tax you owe.
Solar rebates, tax credits, sales tax exemptions and other incentives vary significantly from state to state. Arizona, Hawaii, Massachusetts, New Mexico, New York, South Carolina and Utah offer personal tax credits to encourage solar installations.
How to qualify: The solar tax credit can be claimed by homeowners or renters installing a photovoltaic solar system on a residential home in the U.S. Landlords or property owners installing solar panels on homes they don't currently live in aren't eligible.
The federal government offers tax credits for homeowners who install energy-efficient HVAC systems. Under the Energy Efficient Home Improvement Tax Credit (extended through 2025): Credit Amount: Up to 30% of the cost of the system, with a maximum of $600 for air conditioning units and $2,000 for heat pumps.
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