48E tax credit

What the 48E credit is

It is the commercial version of the solar credit: it applies to businesses that invest in clean generation systems, including panels they install on residential roofs under contracts where they remain the owner. The lease, PPA or subscription company claims the credit on its return, not you on yours.

After the One Big Beautiful Bill Act, 48E for third-party residential solar continues through the end of 2027, with construction and placed-in-service requirements the company must meet.

Why it matters in Florida

With 25D ended for purchases after 2025, 48E is the only federal incentive still entering the residential solar equation in Florida, and it only enters if a third party owns the system. That flips the traditional advice of “buy if you can”: in 2026, a prepaid lease or a well-structured subscription can come out cheaper than buying the same system, precisely because the third party captures a credit you no longer have access to.

The key phrase is “in theory.” The company is not required to pass the full credit through to you. The only way to know whether it did is to compare the total contract cost against the cash price of the same system.

Common mistake

Thinking “there is a federal credit” means you receive it. In a third-party contract the credit belongs to the company. If a salesperson tells you the 30% “is yours” on a lease, ask them which line of your tax return you will claim it on. And confirm any figure with your tax preparer and IRS.gov. More in the federal solar tax credit in 2026.