| Impact Weight (1-100) | 70 |
|---|---|
| Security Level | Public Sales Leadership Staff Leadership Staff Sales Admin |
| Evergreen Weight (1-100) | 5 |
| Status | Active |
| Date Created | Jun 1, 2026 |
| Last Updated | Jun 1, 2026 |
| Channel | Dealer Empower X |
While this is Empower Home Service’s stance on the 25D tax credit, this is not intended in any way to be tax advice. Please always refer your customers to a tax professional for all tax advice.
25D
To qualify for the 30% Federal Tax Credit (Section 25D) before it expires under the new legislation, a customer's solar system must be installed by December 31, 2025. This stance is based on the IRS’s guidance issued on 25D and on communication received from Financ
They DO NOT need Permission to Operate (PTO) from the utility to qualify.
This stance is based on information received from all of our loan funding partners.
The Confusion
Some customers have been told a system must have PTO (be "turned on" by the utility) to claim the tax credit. This is false.
The IRS uses specific language regarding when a tax credit can be claimed. It is based on when the "expenditure" is made.
The IRS Definition
According to IRS Section 25D(e)(8)(A):
"An expenditure with respect to an item shall be treated as made when the original installation of the item is completed."
- What Counts: Panels on the roof, inverter hung, wiring complete. The system is mechanically complete and capable of functioning.
- What Doesn't Matter: Whether the utility has swapped the meter or granted official PTO.
Sales Talk Track
If a customer or their accountant pushes back, use this clarification:
- "Mr./Ms. Customer, the IRS distinguishes between 'Utility Approval' and 'Tax Credit Eligibility.' The tax code (Section 25D) specifically states that the credit is triggered when installation is complete. As long as our crew finishes the work on your roof by December 31st, you have met the 'expenditure' requirement for the 2025 tax year, even if the utility takes a few extra weeks to process the paperwork in January."
Why This Matters Now
With the tax credit expiring at the end of 2025, our construction schedule is the only deadline that matters.
Empower has never guaranteed, or authorized, anyone to promise PTO by the end of the year. If you or anyone has made a personal guarantee to a homeowner, Empower cannot and will not fulfill their guarantee.
Note: While this clarifies the tax code definitions, always remind customers that Empower Home Services does not provide official tax advice and they should consult their tax professional regarding their specific situation.