The Trump Administration’s decision to repeal of the 30% home solar tax credit in 2025 looked like the end of the road for subsidized residential rooftop solar projects, but homeowners can still get it under certain circumstances – until America’s 250th birthday, that is.
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The 30% federal tax credit (Section 25D) for residential solar is, of course, still dead. The credit was very publicly expired on December 31st, 2025 — but that just meant you couldn’t get that 30% back for systems you bought. See, Section 25D (the one that the Trump Administration killed) only applied to taxpayers with an ownership interest in their PV systems, but leases?
Leases are still on the table, though. And – just as we’ve seen with electric vehicle tax credits over the years, the rules for leases are a little bit different than those for purchases.
What that means for home solar is that, under Section 48E of the Federal tax code, qualified solar companies that own a PV system can continue to claim a credit of up to 30% on those through the end of 2027, and if you’re leasing your system or entering into a power-purchase agreement (PPA) with a solar installer, the company can pass some or all of that incentive on to you. The “catch” is that they can only pass along tax credits they actually recieve, and while while Section 48E technically survives through the end of 2027, many solar companies are racing to “safe harbor” projects before July 4, 2026 – the date many in the industry see as the last meaningful chance to lock in the full 30% credit.
