Last-Chance 30% Credit: What MA homeowners must do by Dec 31, 2025
Summary: Congress ended the federal 30% Residential Clean Energy Credit (Section 25D) for homeowner purchases after December 31, 2025. If you want the full 30% for rooftop solar and/or a home battery, you need to move now to get your project completed this year.
What changed—and why the deadline matters
Federal: The One Big Beautiful Bill Act (Public Law 119-21) terminates the residential solar/battery tax credit for expenditures after Dec 31, 2025. In plain English: homeowners who want to own their solar panels have this year to secure the 30% credit; after that, it’s gone. This is not tax advice so always confirm your situation with a tax professional.
Active Massachusetts sweeteners:
Net metering just got friendlier: most homes can size systems up to 25 kW and get higher-value credits without a cap allocation.
State income-tax credit: 15% up to $1,000 for residential solar/wind.
Sales-tax exemption on qualifying renewable equipment.
20-year local property-tax exemption for qualifying solar/wind systems.
Battery payouts (ConnectedSolutions): Mass Save sponsors pay about $275/kW summer performance; which averages “around $1,500/yr” according to program sponsors.
The action plan
1) Lock your timeline now
This week: Request standardized, total-price quotes that include equipment list, pricing for lease/ loan/ cash , production estimate, warranties). If you do not know where to get this you can start here.
Within 2 weeks: Site visit + roof/structural check; select financing
By late October: Permits submitted; interconnection application filed.
By early/mid-December: Installation complete and system ready to operate so you can claim the 2025 credit (your tax advisor will guide how “placed in service/expenditures paid” apply to you).
2) Right-size your system under MA’s new threshold
Massachusetts now lets projects up to 25 kW bypass cap allocations—often increasing credit value for larger homes and small multis. Have your designer re-size with the 25 kW rule in mind (and check municipal light plant towns separately).
3) Add a battery if outages or bill control matter to you
Pairing storage boosts resilience and can earn seasonal payouts:
Mass Save pays ~$275/kW based on summer performance.
This averages ~$1,500/yr (actuals vary by settings/participation).
Enroll at install so you capture 2026 performance months.
4) Stack incentives the smart way
Federal Investment Tax Credit: 30% of total system price.
State income-tax credit: 15% up to $1,000.
Sales-tax: often $0 on qualifying residential solar/heat-pump equipment.
Property-tax: up to 20 years exempt on the system value.
Keep copies of invoices, spec sheets, and completion docs for your returns and local filings.
5) Choose a compliant, reputable installer
Ask for clear permitting and interconnection timelines, and all-in pricing that meets MA’s total-price rule.
Require program enrollment support such as post-install ConnectedSolutions enrollment if you get a battery.
How the federal credit works
The now-ending Residential Clean Energy Credit is 30% of eligible costs (panels, inverters, racking, labor, certain batteries). You claim it via IRS Form 5695 with your 2025 return. The IRS is updating pages to reflect the new law; monitor updates and rely on your tax preparer for timing/eligibility specifics under the repeal language.
Common “gotchas” that can cost you the 30%
Permitting lag (holidays/weather). Build buffer time into December.
Roof surprises (sheathing/ridge/rafters). Pre-inspect early.
Payment/contract terms that don’t align with tax timing. Confirm with your CPA based on the new law’s “expenditures after 12/31/2025” cutoff and typical “placed-in-service” practice.
Utility territory mix-ups Double-check your utility and eligibility.
Example 2025 countdown
By Sept 15: Site visit done; roof plan finalized; financing chosen.
By Oct 15: Permit & interconnection submitted.
By Nov 15: Materials allocated; install on calendar.
By Dec 15: System installed and ready to operate; gather documentation for Form 5695.
Final word
2025 is your window to capture the full 30% federal benefit—on top of MA’s 15% up to $1,000 credit, sales-tax exemption, 20-year property-tax exemption, and potential battery payouts. If you’ve been on the fence, this is the moment to act—carefully and transparently.
Not tax advice: Your eligibility depends on your circumstances. Confirm timing and documentation with a qualified tax professional and follow the latest IRS updates and Congress.gov summaries for the 2025 law changes.
