IRS §25D – Residential Clean Energy Credit
Claim Your 30% Federal Solar Tax Credit — System Must Be Installed by December 31 2025
Updated November 2025 • Los Angeles, CA
Good news: the federal government still offers a 30% solar tax credit for homeowners who install solar panels or solar-plus-battery systems under Section 25D of the Internal Revenue Code.
But the IRS has recently clarified that your solar system must be fully installed — not just inspected or interconnected — before December 31 to qualify for the 30% tax credit.
📝 IRS Clarification (July 4 2025):
The IRS has changed the timing rule for claiming the Residential Clean Energy Credit (Section 25D).
Instead of being considered “placed in service,” an expenditure is now treated as made when the installation is completed — not when the system is inspected or interconnected.
📚 Reference:
IRS FAQ – Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D (July 4 2025)
.
The New Rule: “Expenditures = Installed”
To qualify for the 30% credit on your 2025 taxes, your solar installation must be finished before December 31, 2025. Final inspection or utility interconnection can happen later — what matters is that the installation itself was completed before year-end.
What Documents You Should Keep
- Signed and dated contract with system description and cost breakdown
- Permit or completion record showing installation date
- Proof of payment (check, credit card, or loan statement)
- Manufacturer certificates for qualifying equipment
- Dated photos of the installed system
- IRS Form 5695 filed with your tax return
Source:
IRS Residential Clean Energy Credit
Why Los Angeles Homeowners Should Act Now
- Permitting and scheduling can take 4–6 weeks in LA County
- Installations completed by Dec 31 2025 qualify for this year’s credit
- Inspection and utility interconnection can follow in early January
Why Choose AWS Solar
- Local, family-owned installer serving Greater Los Angeles for 17+ years
- Licensed C-10 #901196 • Premium equipment (Tesla Powerwall 3, Enphase IQ 10C, FranklinWH, REC, CertainTeed)
- Turnkey process: design → permit → install → rebate → interconnection
- Guaranteed installation timelines to meet IRS deadlines
Ready to Claim Your 30% Credit?
AWS Solar will design and install your system in time to meet the IRS installation deadline.
Schedule Free Consultation
Explore Smart Solar Systems
See Battery Storage Options
FAQs
Do I need Permission to Operate (PTO) by Dec 31?
No. For §25D, the qualifying event is installation completion. PTO/inspection can occur later.
Is the credit refundable?
No. It’s a non-refundable credit, but unused amounts can carry forward to future tax years. Ask your tax professional.
Disclaimer: AWS Electrical & Solar Inc. provides general information based on IRS guidance.
We are not tax advisors; please consult your tax professional for personalized advice.
Reference:
IRS FAQ – Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D (July 4 2025)