Idaho Solar Tax Credits and Deductions

The federal homeowner credit ended for expenditures after 2025. Idaho deduction eligibility depends on current rules and your tax situation.

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The Federal Homeowner Credit Ended

The One Big Beautiful Bill Act, signed July 4, 2025, ended the 30% Residential Clean Energy Credit (Section 25D) for expenditures made after December 31, 2025. Eligibility for earlier expenditures or a credit carryforward depends on the taxpayer's circumstances. Ask a qualified tax professional about your situation.

Idaho's State Deduction

Idaho's 2025 Form 39R instructions describe a residential alternative-energy deduction for qualifying devices serving an Idaho residence. It reduces Idaho taxable income, not tax dollar-for-dollar. Eligibility and current-year treatment should be confirmed with a tax professional.

Confirm Eligibility

Check that the system and project meet current program requirements

Check the rules for your filing year

Use the current Idaho instructions and confirm that the system qualifies

Review deductions across four years

The 2025 instructions describe 40% in year one and 20% in each of the next three, with an annual cap

The published 2025 instructions cap the deduction at $5,000 per year. The $20,000 four-year maximum applies only when enough qualifying cost and taxable income are available; confirm the rules for the tax year you are filing.

Businesses

Section 48E may apply to qualifying commercial projects, but eligibility depends on project and taxpayer facts. Federal rules for commercial clean-energy credits include construction-start and placed-in-service requirements that depend on the project and ownership. Check current IRS guidance and consult a qualified tax professional before relying on a credit or depreciation treatment.

Official references

These summaries are general information, not tax advice. Federal and state rules can change. Check the current instructions and discuss your circumstances with a qualified tax professional.

Bundling Roofing + Solar

The Residential Clean Energy Credit is not available for expenditures made after December 31, 2025. Combining roof and solar work may avoid a future panel removal and reinstallation project, but compare itemized estimates for your property.

Learn About Bundling

Important: Tax rules change. Always consult with a qualified tax professional about your situation. We provide general information, not tax advice.

Tax Credit FAQ

Is the 30% federal solar tax credit still available for homeowners?

The Residential Clean Energy Credit (Section 25D) is not available for expenditures made after December 31, 2025. Eligibility for earlier expenditures or any carryforward depends on the taxpayer’s circumstances; consult a tax professional.

What solar incentives are left for Idaho homeowners?

For a qualifying alternative-energy device serving an Idaho residence, Idaho’s 2025 Form 39R instructions describe a deduction of 40% of eligible cost in the year placed in service, followed by 20% in each of the next three years, subject to a $5,000 annual limit. This reduces Idaho taxable income, not tax dollar-for-dollar. Confirm current rules and eligibility with a tax professional.

Can businesses still get a federal credit?

Some commercial projects may qualify for the Clean Electricity Investment Credit (Section 48E), subject to detailed eligibility rules. Federal law now limits certain applicable solar facilities based on when construction begins and when they are placed in service; consult a tax professional before relying on a credit.

Does bundling solar with a new roof still get a tax credit on the roof?

The Residential Clean Energy Credit is not available for expenditures made after December 31, 2025. Whether to combine roof and solar projects is a timing and cost decision; a later roof replacement may require panel removal and reinstallation, with project-specific costs.

Is solar still worth it without the federal credit?

It depends on your roof, energy use, utility billing, and project price. A project-specific estimate can lay out assumptions and any incentives to review with your tax professional.

Review Project Costs and Tax Rules

Request a project-specific solar estimate and confirm tax treatment with your tax professional.

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