What is Residential clean energy credit?
In short
The residential clean energy credit gave homeowners a 30% credit for installing solar panels, solar water heaters, small wind turbines, geothermal heat pumps and battery storage. The One Big Beautiful Bill Act ends it for expenditures made after December 31, 2025.
Key takeaways
- The energy efficient home improvement credit, for items such as insulation and heat pumps, ends on the same date.
- Unused residential clean energy credit could be carried forward.
- Expenditures are generally treated as made when installation is completed.
Where it's tested
REG: Filing Status, Credits & Alternative Minimum Tax — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An unmarried taxpayer pays more than half the cost of maintaining a separate household that is the principal residence of the taxpayer's dependent mother. The mother does not live with the taxpayer. What filing status may the taxpayer use?