IRA Solar Tax Credits Explained: What You Can Claim in 2026
The IRA created three residential clean energy tax credits: the ITC (30% for solar), Section 25C (heat pumps and insulation), and Section 30C (EV chargers). Here's how each works.
Photo by Scott Graham / Unsplash
The Inflation Reduction Act created three residential clean energy tax credits you can potentially stack in the same tax year: the solar ITC, Section 25C, and Section 30C. Here's how each works in 2026.
Credit 1: Solar ITC (Form 5695, Part I)
What: 30% of your solar system cost, including battery if solar-charged. Cap: No cap on the credit amount — a $50,000 system gets a $15,000 credit. Phase-down: 30% through 2032, then 26% (2033), 22% (2034), 0% (2035+). Non-refundable: Reduces taxes owed; unused credit carries forward.
Credit 2: Energy Efficient Home Improvement Credit — Section 25C (Form 5695, Part II)
What: 30% of cost for specific upgrades. Caps per year:
- Heat pumps: $2,000/yr
- Insulation and air sealing: $1,200/yr
- Energy-efficient windows: $600/yr
- Energy-efficient doors: $250/door, max $500/yr
- Energy audit: $150/yr
The caps are per year and reset annually. Installing a heat pump in 2026 and adding insulation in 2027 gets you $2,000 + $1,200 = $3,200 across two years.
Non-refundable. File Form 5695.
Credit 3: Alternative Fuel Vehicle Refueling Property Credit — Section 30C (Form 8911)
What: 30% of EV charger installation cost. Cap: $1,000 for residential installations. Income limits: Phases out above $300,000 AGI (joint) or $150,000 (single).
Stacking example
A homeowner installs solar ($25,000), a heat pump ($8,000), and an EV charger ($1,200) in 2026:
- Solar ITC: $7,500
- Section 25C (heat pump): $2,000
- Section 30C (EV charger): $360
Total credits: $9,860 in a single tax year.
Use the Solar Tax Credit Calculator to calculate your ITC and state credits.
See how this applies to your situation
Calculate your IRA credits →