Is the federal solar tax credit still available?

What changed

The Residential Clean Energy Credit let a homeowner claim 30% of the cost of a solar or battery system against their federal income tax. It was originally legislated to run into the 2030s. The One Big Beautiful Bill Act, enacted on 4 July 2025, terminated it roughly seven years early for expenditures made after 31 December 2025.

The cut-off generally turned on when a system was placed in service rather than when a contract was signed or a deposit paid. A homeowner who signed in late 2025 but was energised in 2026 is in a materially different position from one whose system was commissioned in December 2025.

What this means if you are buying now

• Treat any payback figure that includes a 30% federal credit as incorrect for a 2026 installation.
• The installed price you are quoted is now closer to the price you actually pay, because there is no federal credit arriving later to offset roughly a third of it.
• Florida’s own exemptions have not changed. You still do not pay Florida sales tax on the system, and the added value is still excluded from your property tax assessment.
• Third-party ownership arrangements such as leases and power purchase agreements sit under a different part of the tax code from §25D. If a provider offers one, ask specifically which credit they are claiming and how it is reflected in your pricing.

If you installed in 2025

Credit from a qualifying pre-2026 project that exceeded your tax liability can generally still be carried forward to a later tax year. The carry-forward is a feature of how the credit was claimed, not something the repeal removed retroactively. This is a question for a tax professional who can see your return, not for a solar website.