State Solar Tax Credits 2026: The Complete State-by-State List
The federal solar credit expired — but several states still offer their own solar tax credits in 2026. Here is the full list of state solar tax credits, caps, and who qualifies.
Federal credit is gone; states remain
The 30% federal residential credit (Section 25D) expired Dec 31 2025. State credits are now the main direct tax relief for solar buyers. They are income tax credits — they directly reduce what you owe, not just taxable income.
States with solar tax credits in 2026
New York: 25% (cap $5,000). Massachusetts: 15% (cap $1,000). Arizona: 25% state income tax credit for qualifying systems. Several other states offer smaller credits or property/sales tax exemptions — see the incentives hub for all 50 states.
Stacking rules
State credits generally stack with each other and with rebates, but do not claim the expired federal credit. Verify current caps and application steps with your state's Department of Revenue — programs change and some have annual caps.
FAQ
Is there a state solar tax credit in 2026?
Yes in several states: NY (25%, cap $5,000), MA (15%, cap $1,000), AZ (25%), among others. The federal credit itself is expired.
Can I combine state solar credits and SRECs?
Generally yes — state credits and SREC income stack. Confirm with your state revenue department.
How do I claim a state solar tax credit?
File with your state income tax return and attach documentation of your solar purchase. Each state has its own form and cap.
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Sources
- U.S. EIA — electricity rates by state, eia.gov/electricity/monthly
- NREL PVWatts v8 — solar production by location, pvwatts.nrel.gov
- DSIRE — state incentives and net metering, dsireusa.org
- See how every figure on this page is calculated — PVFig methodology.
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