Solar Tax Credit Form 5695: What to Know Before You File
The residential solar credit is claimed on IRS Form 5695 — but it expired for 2026 installations. Here is who can still claim it, carryover rules, and what to keep for your records.
The credit is expired for 2026 — mostly
The residential clean energy credit (Section 25D) expired for systems placed in service after Dec 31 2025. If your system was energized in 2025, you can still claim 30% on your 2025 return, and unused credit carries forward up to 5 years.
What Form 5695 does
Form 5695 calculates the Residential Clean Energy Credit from qualified solar electric property costs. You attach it to your federal return with documentation: contract, invoice, and proof of placed-in-service date. State credits are separate.
What to keep in your records
Keep the contract, itemized invoice, interconnection/PTO approval, and a photo of the installed system. The placed-in-service date is what determines eligibility — a signed contract in 2025 with installation in 2026 is NOT eligible.
FAQ
Can I claim the solar tax credit in 2026?
Only for systems placed in service by Dec 31 2025. New 2026 installations are not eligible under the One Big Beautiful Bill Act.
What is IRS Form 5695?
The form that calculates the residential clean energy credit from qualified solar costs. It attaches to your federal income tax return.
Does the solar credit carry forward?
Yes — unused credit carries forward up to 5 years if you couldn't use the full amount on your 2025 return.
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Sources
- U.S. EIA — electricity rates by state, eia.gov/electricity/monthly
- NREL PVWatts v8 — solar production by location, pvwatts.nrel.gov
- DSIRE — state incentives and net metering, dsireusa.org
- See how every figure on this page is calculated — PVFig methodology.
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