The homeowner credit ended
The Residential Clean Energy Credit (IRS Section 25D) gave homeowners 30% of their solar cost back as a federal tax credit. The 2025 federal budget law ended it for expenditures made after December 31, 2025. The IRS treats a system whose installation is completed after that date as a 2026 expenditure, so signing or paying in 2025 isn't enough. If you buy a system with cash or a loan now, there's no federal credit to claim.
If you installed in 2025 or earlier, you can still claim the credit on your tax return for that year and carry unused amounts forward. Talk to a tax professional.
Leases and PPAs can still use a federal credit
With a solar lease or power purchase agreement, a company owns the system on your roof and you pay for the power or a fixed monthly amount. Because the owner is a business, it may claim the commercial clean electricity credit (Section 48E), and competitive installers pass much of that through as a lower rate.
That business credit has its own phase-out deadlines tied to when construction begins and when the project is placed in service, so the advantage is likely time-limited. Ask any installer how their pricing depends on those dates.
Illinois incentives didn't go away
Illinois Shines, the $300/kW ComEd and Ameren rebate and the state's solar property tax treatment all still apply. Illinois Shines even added a per-REC adder in 2026 for customer-owned systems that don't claim a federal credit. See all Illinois solar incentives.
Sources
This guide is general information, not tax, legal or financial advice. Incentive programs change, so confirm current terms with your installer, your utility and a tax professional.