Eligibility by placed-in-service date
The IRS says qualified residential clean-energy property installed from 2022 through December 31, 2025 may qualify at 30%. Property placed in service after December 31, 2025 does not qualify for this homeowner credit under current guidance. Contract date, deposit date and equipment delivery are not substitutes for placed-in-service status.
If installation crossed year-end, obtain documentation and ask a qualified tax professional which year applies. This guide is educational and does not determine an individual tax position.
Ownership, residence and qualified property
The claimant generally must own the eligible property. A lease or power-purchase agreement normally leaves the equipment owner, not the homeowner customer, with any owner-level tax benefit. IRS guidance also distinguishes residence use, business use and landlord-only property.
Qualified categories can include solar electric property and battery storage meeting the IRS capacity rule. Used property is not eligible. Review the current IRS page and Form 5695 instructions for the tax year being filed.
Costs, rebates and financing
Eligible basis can include qualifying equipment and original installation labor, but ordinary roof components and loan interest are not automatically qualified costs. Subsidies and rebates can change the amount. Do not copy a contractor marketing total directly to a tax form without checking the rules.
Financing does not by itself change ownership, but dealer fees, origination charges and interest require careful treatment. Keep an itemized invoice rather than a single financed total.
Form 5695 and carryforward
For an eligible tax year, homeowners use Form 5695 and transfer the allowed amount to the individual return as instructed. The credit is nonrefundable: it cannot exceed applicable tax liability for the year. Current IRS guidance says excess unused credit may be carried forward.
Keep the contract, itemized final invoice, payment records, permits, inspection and utility permission-to-operate or other completion evidence. Use the Form 5695 version and instructions for the return year, not a screenshot from an older guide.