Residential Solar ITC Expired Jan 1, 2026 — Commercial ITC Continues at 30% Through 2027

The federal Residential Clean Energy Credit (IRS Section 25D) expired for new installations placed in service on or after January 1, 2026. Originally established under the Inflation Reduction Act of 2022 at 30% of system cost through 2032, the credit was subsequently revised and is no longer available to residential homeowners commencing new installations in 2026 or later. Homeowners who placed a qualifying solar system in service on or before December 31, 2025 may still claim the credit on their 2025 federal tax return (filed in 2026) using IRS Form 5695; carryforward of any unused credit applies until exhausted. The Commercial Solar ITC under IRS Section 48 remains active at 30% for qualifying business installations: construction must commence by July 4, 2026 (the safe-harbor 'commence construction' deadline) and the system must be placed in service by December 31, 2027 to qualify for the full base rate. Domestic-content and energy-community bonus credits (each adding 10 percentage points) remain available on commercial systems through 2027. Tax-exempt organizations (nonprofits, municipalities, tribal governments, schools) may use the elective-pay option to receive the credit as a direct payment rather than a tax offset. Homeowners considering residential solar in 2026 and beyond should focus on state-level incentives, net-metering economics, and battery storage policy rather than federal tax credits. See yourwatts.com/guides/solar-after-itc-expired for the full post-ITC homeowner playbook.