Independent coverage of Illinois housing, remodeling & residential developmentSaturday, November 7, 2026
Illinois Remodeling & Development Network

Illinois home energy programs

Federal §25D Residential Clean Energy Credit

The "30% solar tax credit" is still the most repeated number in solar sales — and for 2026 spending it is not available under current law. If a quote depends on it to pencil out, that is the first thing to re-check.

Closed for new 2026 spending

Under current IRS guidance the credit does not apply to expenditures made after December 31, 2025. Confirm your situation with a tax professional.

Administered by Internal Revenue Service. Last reviewed November 6, 2026.

Independent guidance — Illinois RDN is not a government agency and does not administer these programs.

At a glance

Status
Not allowed for expenditures after Dec 31, 2025
Previously covered
Solar electric, battery storage, geothermal, solar water heating, fuel cells
Watch for
Quotes that assume a 30% credit for 2026 work
Illinois alternatives
Illinois Shines, Solar for All, utility programs

Who it is for

  • Historically the credit applied to qualifying expenditures on a principal or secondary residence, with the system installed and placed in service under the rules for that year.
  • For expenditures made in 2026, current IRS guidance does not allow the credit.
  • Questions about prior-year expenditures and carryforwards belong with the IRS guidance and a qualified tax professional.

What it covers

  • Historically: solar electric systems, battery storage, geothermal heat pumps, solar water heating and fuel cells, at the credit rate in effect for the year.
  • Not currently: new 2026 installations of any of the above for the purpose of claiming this credit.

How to apply

  1. 01
    Re-run the economics without it

    Ask the installer to show the payback with Illinois incentives only. That is the number that matters for a 2026 decision.

  2. 02
    Check the expenditure date

    The relevant date is when the expenditure was made under the IRS rules, not when a proposal was signed.

  3. 03
    Look at Illinois programs instead

    Illinois Shines and Illinois Solar for All are operating state programs; neither is a federal credit.

  4. 04
    Ask a professional about prior years

    If you installed a system in an earlier qualifying year, ask about any unclaimed credit or carryforward.

What to have ready

  • Invoice and placed-in-service documentation for any prior-year system.
  • Manufacturer certifications where applicable to a prior claim.
  • Your prior-year return when consulting a preparer.

Where homeowners get stuck

  • Signing a 2026 contract whose payback depends on a credit that does not apply.
  • Confusing Illinois Shines (a REC incentive) with a federal tax credit.
  • Assuming a deposit date establishes eligibility.
  • Overlooking that state incentives may be reflected as a reduced system price rather than a payment to you.

How it combines with other programs

Illinois Shines and Illinois Solar for All remain the operating solar incentives, and net metering still governs how exported power is credited on your bill. None of them is a tax credit.

Official links

Questions homeowners ask

Is the 30% solar credit available in 2026?

Under current IRS guidance, no — the credit is not allowed for expenditures made after December 31, 2025. Verify with the IRS or a tax professional for your specific facts.

Did the credit go away entirely?

For new spending under current law, yes for this credit. Prior-year expenditures and carryforward questions are fact-specific and worth asking a preparer about.

What incentives can I actually use now?

Illinois Shines and Illinois Solar for All, plus any current utility offers. Each has its own eligibility and none is a tax credit.

Should I delay a purchase hoping it returns?

That is a judgment call about policy, not something this page can advise on. Price the system on current incentives and decide on that basis.

Federal §25C creditIllinois ShinesAll Illinois energy programs

Other Illinois energy programs

Sources

Illinois data behind this guide