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Federal incentives
Federal Residential Clean Energy Credit (25D)
30% for systems installed 2022–2025; not available for installations completed after December 31, 2025[1]
The 30% federal credit for homeowners who bought solar ended with Public Law 119-21. A system counts in the year its installation is completed, so paying in 2025 for a 2026 installation does not qualify.
- Who
- Homeowners who bought and installed a system by December 31, 2025 claim it on IRS Form 5695 for that tax year.
- Deadline
- December 31, 2025
- Checked
- November 5, 2026
Business credit for leased and PPA systems (48E)
Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[2]
If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.
- Who
- Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
- Deadline
- December 31, 2027
- Checked
- November 5, 2026
State incentives in Washington
Sales and Use Tax Exemption for Solar Systems up to 100 kW (RCW 82.08.962(1)(e))
100% of state and local sales tax on solar equipment and installation labor for systems of 100 kW AC or less[3]
Solar systems of no more than 100 kW AC installed (begun no earlier than July 1, 2019, completed by December 31, 2029) by a seller holding RCW 18.27 contractor registration with no recent wage-law violations; the buyer gives the seller an exemption certificate. The section itself expires January 1, 2030.
- Who
- Solar systems of no more than 100 kW AC installed (begun no earlier than July 1, 2019, completed by December 31, 2029) by a seller holding RCW 18.27 contractor registration with no recent wage-law violations; the buyer gives the seller an exemption certificate. The section itself expires January 1, 2030.
- Deadline
- December 31, 2029
- Checked
- November 5, 2026
How these incentives stack
Cash rebates are paid first and usually reduce the cost a tax credit is based on. State tax credits only help if you owe enough state income tax. Exemptions (sales and property tax) apply automatically or through a form, and they do not reduce what you owe the installer on paper, so check that a quote does not charge tax that the law exempts. The calculator applies the programs it can model and lets you switch utility rebates on or off.
FAQ
Frequently asked questions
Does Washington have a solar tax credit?
No. Washington offers exemptions and utility programs instead of a state income tax credit; see the list above.
Can I still get the federal solar tax credit?
No, not if you buy the system and installation is completed after December 31, 2025 (Federal Residential Clean Energy Credit (25D)[1]). If a company leases you the panels or sells you the power, that company may still claim a business credit and may pass some value on through the price.
sources
[ 3 ]Every number on this page links to one of these sources. Dates show when we last checked each one.
- IRS FS-2025-05: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)irs.gov · checked Nov 5, 2026
- Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
- RCW 82.08.962 - Exemptions: Sales of machinery and equipment used in generating electricity (Expires January 1, 2030)app.leg.wa.gov · checked Nov 5, 2026
Incentive list last re-checked November 5, 2026. Programs change; confirm with the program before you sign.
Change log
- What the rule says updated to “On March 31st of each calendar year, any remaining unused credits for kilowatt-hours accumulated during the previous year shall be granted to the electric utility, without any compensation” (RCW 80.60.030 - Net energy measurement, charges for kilowatt-hour consumption, and credits for excess kilowatt-hour generation).