IRA Residential Clean Energy Credit (25D)
IRS / Inflation Reduction Act
About This Program
Note: Congress ended this federal tax credit for installations after December 31, 2025. Projects placed in service by that date can still be claimed on your 2025 federal return (IRS Form 5695).
The IRA's Residential Clean Energy Credit provides a 30% federal tax credit with no cap for qualifying solar panels, geothermal heat pumps, battery storage systems, and solar water heaters installed in a primary residence. The credit is nonrefundable but can be carried forward. Alabama homeowners can combine this credit with Alabama Power rebates for maximum savings.
30% of total project cost; no dollar cap; can combine with utility rebates.
The cited program-specific URL responded on 2026-07-21; confirm current terms.
Record set last reviewed 2026-07-20. How we verify our data.
Other published resources for Birmingham, AL, are listed below. Review each separately and ask the administrators whether they can coordinate funding for the same work:
- City of Birmingham Critical Repair Program $30,000
- Jefferson County CDBG Housing Rehabilitation Program Varies by project scope
- Greater Birmingham Habitat for Humanity, Home Repair & Roof Program Up to $10,000 (roof grants); critical repair varies
- Rebuilding Together Central Alabama Free repairs (no dollar limit stated)
Key Details
- 30% tax credit on solar panels, geothermal, and battery storage
- No annual dollar cap (unlike the 25C improvement credit)
- Must have federal tax liability; nonrefundable but carryforward allowed
- Can be combined with Alabama Power rebates
- Active for installations completed by December 31, 2025; claim on IRS Form 5695
How to Apply
Some programs require contractor estimates, licenses, or inspections. A cited link may be general, so confirm the current rules with the administrator before hiring; a directory match does not guarantee contractor eligibility or funding.
You may need a contractor or estimate
Some programs for this project type ask for a license, inspection, or written estimate. Confirm the rule before contacting a contractor in Birmingham.
Get matched with a contractorEach administrator sets its contractor rules. Confirm exact requirements directly; the cited URL may be a general agency page.
Your application paperwork
Form to file: IRS Form 5695
This is a federal tax credit, not a grant you apply for. You claim 30 percent of the cost of a qualifying solar or clean energy system on your federal tax return using Form 5695.
Steps to apply
- Have your solar or clean energy system installed and pay for it.
- Keep the itemized invoice and proof of payment.
- Complete IRS Form 5695 and file it with your Form 1040 for the year the system was placed in service.
- If the credit is larger than your tax bill, carry the unused amount forward to next year.
Documents you will likely need
- Itemized invoice from your installer showing the system cost.
- Proof of payment.
- Manufacturer certification statement for the equipment.
- Your federal tax return (Form 1040) for the year of installation.
Requirements vary by program and locality. Confirm the exact rules and application route with the administrator. We can help you prepare your paperwork, but you submit it yourself.
Deadline: Ended December 31, 2025 (federal law change)
Questions about this program?
Email us at no charge. Messages are reviewed manually, but a response time is not guaranteed.
Email us about this programReport a problem with this listing
Need a Contractor for This Project?
Browse local listings or request an introduction. The Grant Map does not guarantee licensing, program experience, work quality, or funding.
More ways to save on this project
Rebates and discounts that may reduce project cost. Confirm eligibility and coordination rules before including one in your budget.
Find More Programs in Birmingham, AL
This is one of several kinds of assistance that may be available. Review other programs separately and confirm whether their administrators allow coordination for the same work.
See All Programs