Reviewed and updated October 16, 2026
The residential deadlines changed
The 2025 tax law ended the Energy Efficient Home Improvement Credit for property placed in service after December 31, 2025. It also ended the Residential Clean Energy Credit for expenditures after that date, with installation timing rules that matter. A 2026 purchase should not be promoted using the earlier promises of residential credits continuing into the 2030s.
Paying a deposit before the deadline did not by itself establish eligibility for a solar project installed later. For existing-home installations, the IRS generally treats the expenditure as made when the original installation is completed.
Distinguish the two credits
The home-improvement credit covered qualifying items such as certain insulation, doors, windows and heating equipment, with annual and item-specific limits. The residential clean-energy credit covered qualifying systems such as solar and battery storage under different rules. A marketing label such as energy efficient does not prove eligibility.
A valid unused residential clean-energy credit can have carryforward treatment. Do not confuse a carryforward from a qualifying prior project with eligibility for a new installation after the cutoff. Review the prior Form 5695 and applicable instructions.
Review older projects with records
Keep contracts, final invoices, completion dates, manufacturer certifications, rebate records and prior credit forms. Allocate mixed-use costs and separate qualifying from nonqualifying work. Federal, state and utility incentives can interact, so provide all rebates and assistance information.
If a qualifying 2025 project was omitted, discuss whether an amendment is appropriate rather than adding the cost to the wrong year. This article focuses on residential projects; commercial-building and vehicle-charging provisions have different deadlines and requirements.
Official sources
This guide provides general information. The rules depend on the tax year, jurisdiction and your circumstances. Ask our team which filing or planning steps apply to you.
