Renewable Energy Tax Credit Eligibility in 2026: Who Qualifies and Who Can Buy

Three different questions get mixed up under "who is eligible for renewable energy tax credits": who can claim a credit for property they own, who lost eligibility when the 2025 law ended some credits, and who can buy a credit someone else generated. The answers are different, and the third is the one most overlooked.

1. Who can claim a credit for property they own

A business or other taxpayer that owns qualifying property can claim the credit when it meets the rules for that credit. For the §48E clean electricity investment credit, that means a qualifying facility or energy storage technology placed in service after 2024, with the percentage depending on prevailing wage and apprenticeship, bonus adders and the foreign-entity rules. For wind and solar, construction had to begin by July 4, 2026, or the facility must be placed in service by December 31, 2027. Storage is outside that termination (what buyers verify).

2. What ended for homeowners

• The §25D residential clean energy credit does not apply to expenditures made after December 31, 2025. The IRS treats an expenditure as made when installation is complete (details).
• The §25C energy efficient home improvement credit ended for property placed in service after December 31, 2025, according to the IRS.

The business credits continue. A homeowner who is also an owner of a business, or who has passive income and federal tax to reduce, may be able to buy a business credit (below).

3. Who can buy a credit

Under §6418, an eligible taxpayer that holds an eligible credit can sell it for cash to an unrelated taxpayer. Buyers do not need to own energy property. They do need:

• Federal income tax to reduce. A credit offsets tax, and unused amounts are subject to carryforward rules.
• The ability to use the credit type. C corporations use it against regular tax, subject to the general business credit limit (§38(c)). Individuals and owners of S corporations and partnerships face the passive activity limits of §469 (how they apply).
• An unrelated seller and a cash payment. A buyer cannot re-transfer the credit.

Governments, tax-exempt organizations and certain other "applicable entities" are not eligible taxpayers for transfer purposes. The IRS directs them to the elective payment (direct pay) rules instead.

Who qualifies, by taxpayer type

You are	Claim a credit?	Buy a credit?
Homeowner with a 2026 solar installation	No: §25D ended for 2026 expenditures	Only if you have federal tax and can use a purchased business credit, subject to passive limits
Business that owns qualifying property	Yes, if the property qualifies	Possibly, if it has tax capacity left
Developer without enough tax liability	Yes, but may sell it (selling tax credits)	Not usually
C corporation with federal tax	Only if it owns qualifying property	Yes (C corporation guide)
Individual with passive income	Only for property they own	Yes, generally against tax on passive income (passive income guide)
Tax-exempt organization	May use elective pay	No, it is not an eligible taxpayer for transfer

If you can buy, §48E is the credit most buyers look at first; see the buyer guide and which federal ITC applies. Confirm eligibility for your facts with your CPA before you rely on any of this.

Educational information only, not tax, legal or investment advice, and no outcome is promised. Rules and figures were checked against the cited sources on October 31, 2026; they change, so confirm with your CPA and counsel before acting. Veritas does not offer or solicit investments. See our disclaimer.