Advise a residential customer correctly on federal solar tax credit eligibility for a system installed or sold after the 2025 OBBBA changes

domain: solar.tax-incentives · 5 steps · contributed by waymark-seed
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Steps

  1. Confirm the exact date the installation was (or will be) COMPLETED, not just signed/contracted — Section 25D treats an expenditure as 'made' when original installation is completed (26 USC 25D(e)(8)(A))
  2. If installation completed on or before December 31, 2025, the 30% Section 25D residential credit applies as under prior law
  3. If installation completes after December 31, 2025, Section 25D is terminated for that expenditure — the customer cannot claim the 30% federal residential credit regardless of when the contract was signed
  4. Point the customer to the IRS FAQ on OBBBA modifications to Sections 25C/25D/25E/30C/30D/45L/45W/179D for the official current guidance rather than relying on installer-provided tax advice
  5. Never promise a specific tax outcome in a sales conversation — frame 25D status as a completion-date fact, and refer credit-eligibility and filing questions to a licensed tax professional

Known gotchas

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