Solar Panel Tax Credits

Solar Panel Tax Credits and Incentives for Illinois Homeowners

Take advantage of state and federal incentives to reduce the cost of upgrading your Jacksonville home with solar paneling. Our team at MB Heating and Cooling will work with you to ensure you receive the maximum financial benefits!

Upfront costs are typically the biggest obstacle when transitioning to green energy appliances and clean energy sources. The Inflation Reduction Act of 2022 (IRA) helps offset those costs through tax breaks and rebates. The state of Illinois also provides incentives to help you go green with solar energy.

Federal Tax Credits for Solar Paneling

The 25D Residential Clean Energy Tax Credit provides an uncapped 30 percent federal tax credit on the purchase and installation of solar paneling. Projects installed between January 1, 2023, and December 31, 2032, qualify.


This tax credit is retroactive. If you installed rooftop solar in 2022, it is eligible for the full 30 percent tax credit.

Who qualifies for 25D?

Anyone with adequate tax liability to offset can qualify for 25D. That means you only qualify if you owe money on your taxes. You can take a partial credit the first year and roll over any leftover credit for up to five years.

MB Heating and Cooling can help you determine how much of a tax credit you might receive based on the projected paneling costs. Be sure to save your receipts for filing season, and always consult with a professional tax preparer.


Does 25D apply to new construction?

Yes! This credit offers a great opportunity to go solar for anyone building a new home.

Can 25D stack with other incentives?

Yes! 25D can stack with other incentives, including federal rebates expected to roll out later this year or in early 2024. But keep in mind, the federal rebates are based on income eligibility and are not retroactive. The tax credit is available now.

MB Heating & Cooling will gladly assist you with any paperwork. We want to make it easy for you to save as much money as possible.

Solar Panel Incentives and Rebates in Central Illinois

Local incentives are also available for Illinois homeowners who install solar paneling:

Illinois Net Metering Policy: Provides credits for excess energy production that you can use to pay down future bills.

Illinois Shines Program: Solar customers earn credits for all solar production, which you can sell for a profit.

Illinois Solar for All: Customizes payment plans for low-income solar customers.

Solar Property Tax Exemption: Prevents your property taxes from going up because of solar paneling—even if the value of your home increases.

City of Chicago Green Building Permit Programs: Solar panel applicants can qualify for an expedited permitting process and possible reduction in permit fees.

Our Springfield solar paneling experts know each of these programs and how they can benefit you. Call for a free consultation to learn how we can help you upgrade your home.

Save Money on Your Solar Panels!

Not sure which programs apply to you? MB Heating and Cooling can walk you through each one to determine if it’s the best fit for your income and Jacksonville, IL, home. Call us today at 217-544-4328 or request service online.

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