Homeowners Lost the 30% Solar Tax Credit. Landlords Didn't.
The residential credit closed on December 31, 2025. But the IRS doesn’t see your rental as a home — it sees it as an income-producing investment.
That puts it under the commercial energy credit, which is still 30% — plus a depreciation write-off homeowners were never allowed to take.
Call (888) 872 9271 Today!
Tampa Bay
Orlando
daytona beach
sarasota
fort myers
miami
Most Rental Owners Think They Missed It. They Didn't.
When the residential solar credit expired at the end of 2025, the headlines were everywhere: “Last chance for solar.” For homeowners, that was true. Section 25D — the credit you claim on the house you live in — closed on December 31, 2025.
But there was a second credit. There always has been. Section 48E is the commercial energy credit, and it never closed. It’s still 30%, and it applies to solar installed on property held to produce income — which is exactly what a rental is.
You didn’t miss the deadline. You were never on that deadline in the first place.
And because your system is business equipment, the credit is only part of it:
What that looks like on a $30,000 system:
| System cost | $30,000 |
| 30% federal credit (§48E) | −$9,000 |
| Year-one depreciation deduction | $25,500 |
| Est. tax value of that deduction (32% bracket) | −$8,160 |
| Estimated first-year federal benefit | ≈ $17,160 |
Illustration only, at a 32% marginal federal rate. Your actual benefit depends on your bracket, your basis, and whether passive activity rules limit your use of the credit this year. See below — and talk to your CPA.
Long-Term Rentals
Roof First, Then Solar
Short-Term Rentals & Airbnb
Small Commercial & Mixed-Use
Battery Backup That Protects Reviews
Whole-Portfolio Installs
CPA Validated
Solar companies have a reputation for waving tax numbers around and letting the customer sort out the mess in April. We didn’t want to do that. The rules on this page were reviewed by a licensed CPA — and that review surfaced one thing we’d rather you hear from us now than from your accountant later.
Passive activity rules matter. If your rental income is passive — which it is for most long-term landlords — the credit generally offsets tax on passive income, not the tax on your W-2 or your main business. That doesn’t make it worthless; unused amounts generally carry forward. But it changes when you get the money.
Two situations change that math entirely: if you materially participate in a short-term rental with an average guest stay of seven days or less, or if you qualify as a real estate professional, the picture opens up considerably.
Bottom line: the 30% is real and it’s available to you. Whether you can use all of it in year one depends on your specific situation. We’ll give you the system numbers; your CPA confirms how they land on your return. If you don’t have a CPA who knows solar, we can point you to one.
Licensed CVC57333. Fully insured. Tesla Powerwall certified. 40+ five-star Google reviews. Serving all of Florida.
FIND OUT WHAT YOUR RENTAL QUALIFIES FOR
No cost, no obligation, no high-pressure appointment. Tell us about the property and we’ll come back with a system estimate and the tax figures your CPA will need.
There is a hard date on this one: December 31, 2027. Systems that began construction before July 4, 2026 got a long runway — that window has closed. Anything starting now must be fully installed, inspected and operational by the end of 2027 to claim the 30%. Between design, permitting, utility interconnection and inspection, seventeen months is less time than it sounds.
Prefer to talk? Call (888) 872-9271 and ask for the rental property team.
Frequently Asked Questions
Two different credits. Section 25D — residential, for the home you live in — ended December 31, 2025. Section 48E — commercial, for income-producing property — is still active at 30%. Your rental falls under the second one.
For this purpose, yes. The distinction that matters isn’t the building type — it’s whether the property is held to produce income. A single-family house you rent out qualifies as business-use property.
Three things: the credit and the depreciation regardless of who pays the power bill, a property that’s more valuable and more marketable, and the option to restructure your lease or fold solar into the rent. Owners who cover utilities — most short-term rentals — see the strongest returns.
Possibly, on a proportional basis — but mixed-use properties have their own rules and usage thresholds. Bring us the details and take the result to your CPA before you count on it.
There’s no per-owner cap. Portfolio owners frequently do several. Talk to us about sequencing them — there are real timing considerations given the December 2027 deadline.
That’s our specialty. We assess the roof first and either handle it in-house or coordinate with our roofing partners, so the job gets done once, in the right order, instead of putting panels on a roof that needs replacing in three years.
Typically a few months from signed agreement to operational, depending on your county’s permitting and your utility’s interconnection queue. Which is exactly why the December 2027 deadline deserves more respect than it’s currently getting.
All of it. We work throughout Tampa Bay, Orlando, Daytona Beach, Sarasota, Fort Myers and Miami, and we travel statewide for portfolio projects. We know which county permitting offices move quickly and which ones don’t.
Sun Lift Solar is a licensed solar contractor (CVC57333), not a tax advisory firm. The information on this page is general in nature, reflects federal tax law as of July 2026, and is not tax advice for your situation. Eligibility for the Section 48E credit, the treatment of depreciation, and the application of passive activity loss rules all depend on facts unique to you and your properties. Consult your CPA or tax advisor before making a purchase decision based on anticipated tax benefits. Tax law is subject to change.