One Big Beautiful Bill’s Changes to Solar Tax Credits: How It Impacts Iowa & Missouri Residents

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Federal Solar Incentives for Residential Will Be Terminated by End of Year

With a new administration comes new policies. On July 4, 2025, new legislation under the “One Big Beautiful Bill” was signed, cutting federal solar tax incentives for residents, commercial entities, and agriculture. For residential solar, in order to reap the benefits of the 30% federal solar tax incentive, residents MUST have their solar project “placed in service” by December 31, 2025.

“Placed in service” is a term used by the Internal Revenue Service to describe a system that is eligible for tax credits. In other words, installation is complete and the solar panel system is able to generate electricity. This is why it is imperative that residents act now, with only a few more months left in this calendar year.

Note: Commercial and agricultural solar is BOC (beginning of construction) prior to July 4, 2026 and must be placed in service by December 31, 2027 to receive federal tax credits.

What Does the Federal Solar Incentive for Residential Offer?

The federal solar incentive is a dollar-for-dollar credit of 30% of the cost of the following from residential taxes:

  • New solar panel systems
  • Energy storage devices
  • Installation expenses

This has helped thousands of homeowners all over the states of Iowa, Missouri, and beyond be able to afford solar for their property. It provided security in knowing that beyond the initial cost of installation, they would be able to receive tax benefits along with cost savings on energy for the future. This impact is huge.

How To Secure the Federal Solar Tax Incentive For Your Residential Property

If you’re looking to reap the benefits of the government’s imminent federal solar tax incentive, here’s what to do.

Step 1: Get in Touch With a Solar Provider ASAP

At 1 Source Solar, we’re a turnkey solar company, meaning that we can plan, install, and maintain a solar array from start to finish. Our services span across the states of Iowa and Missouri, helping homeowners, business owners, and farmers across the Midwest. As a turnkey solar company, we can get you the service you need quicker than a normal solar installer.

Remember, the faster you get a hold of a solar company, the faster your solar project can be installed by the federal solar tax incentive deadline of December 31, 2025.

Step 2: Make a Plan for Solar Financing

It’s normal for not every person to be able to afford the initial cost of solar right away. Our team can refer you to financing options, or you can work with your financial institution to find financing that works for your budget. Like many other companies, we cannot begin installing solar unless the finances are determined and a payment is made.

Step 3: Let the Solar Experts at 1 Source Solar Handle the Rest

Once you’ve made your initial investment, it’s time for us to get to work. We’ll update you throughout the timeline of your project to make sure we get it done as soon as possible. While we cannot fully guarantee “placed in service” by the deadline of December 31, 2025, if factors outside of our control lag behind, you can be rest assured that we will do everything within our power to complete your solar project.

There Will NEVER Be a More Cost-Effective Time To Go Solar. Act Now Before the Year Ends With 1 Source Solar.

These federal solar incentives may never return, which is why it’s imperative to act as soon as possible. If you’ve ever considered solar as an option for your property, the time is now. Our team of industry experts is here to walk you through the solar installation process every step of the way.

Contact us today to get started, before it’s too late.