Solar Tax Credits Expire Dec 31, 2025: Last Chance to Save $14,000+
Shocking Industry Truth
⚠️ URGENT: Federal Solar Tax Credits Expire December 31, 2025
Time is running out. After the "One Big Beautiful Bill" was signed in July 2025, the 30% federal solar tax credit was set to expire on December 31, 2025—just 6 weeks from today. For Myrtle Beach homeowners, this means the difference between saving $14,291 or paying full price for solar roofing. With federal (30%), South Carolina state (25%), property tax exemptions, and utility rebates all stackable, the opportunity is massive—but the window is closing fast. Call (843) 877-5539 for your FREE solar assessment today.
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What Changed? Why Solar Tax Credits Expire December 31, 2025
According to the IRS and Energy Star, the "One Big Beautiful Bill" signed in July 2025 ended the extended solar tax credit program. Originally, the Inflation Reduction Act had extended the 30% credit through 2032. The new legislation created a hard December 31, 2025 deadline.
After December 31, 2025:
- 2033: Credit drops to 26%
- 2034: Credit drops to 22%
- 2035+: Credit expires completely
Critical Timing: Your solar installation must be COMPLETE and operational (placed in service) by December 31, 2025. Starting the project isn't sufficient. With typical installation timelines of 4-8 weeks (permitting 2-4 weeks + installation 1-3 days + inspection 1-2 weeks), homeowners need to start their assessment NOW.
If you haven't scheduled your assessment by mid-December, you may miss the deadline entirely.
What Roofing Actually Qualifies for Tax Credits (And What Doesn't)
What DOESN'T Qualify (Common Misconceptions)
❌ Traditional roofing materials do NOT qualify:
- Traditional asphalt shingles (even "architectural" or "premium")
- Metal roofs with reflective/pigmented coatings (changed in 2023)
- "Cool roofs" with reflective granules
- Standard slate, tile, or wood shake roofing
- Structural components (roof trusses, decking, rafters)
- Roofing repairs or replacements (unless solar integrated)
Why Traditional Roofing Doesn't Qualify: The IRS distinguishes between structural building components and clean energy generation systems. Traditional roofing serves a structural function (keeping weather out), not an energy generation function. Only roofing that generates electricity qualifies.
What DOES Qualify (Solar Electric Generation)
✅ Solar electric generation systems qualify:
- Solar shingles (integrated solar roofing tiles) - Examples: Tesla Solar Roof, GAF Timberline Solar, CertainTeed Solstice
- Solar roofing tiles - Similar to shingles but larger format
- Traditional solar panels - Rack-mounted on existing roofs (most common and cost-effective)
- All associated equipment - Inverters, mounting hardware, wiring, battery storage (optional)
- Labor costs - Installation, permitting, and inspection fees
How Myrtle Beach Homeowners Save $14,291 with Stacked Incentives
The federal credit is just the beginning. By stacking four separate programs, Myrtle Beach homeowners can save over $14,000 on solar roofing.
Incentive #1 - Federal Solar Tax Credit (30%)
- Credit Amount: 30% of total system cost (no upper limit)
- Average System Cost in SC: $35,970
- Federal Credit Value: $10,791
- How it Works: Direct federal income tax credit (not deduction), reduces your tax liability dollar-for-dollar, claim on IRS Form 5695
Incentive #2 - South Carolina State Tax Credit (25%)
- Credit Amount: 25% of system cost, up to $3,500 maximum
- State Credit Value: $3,500 (maximum)
- How it Works: State income tax credit, claim on SC Form SCH.TC-38, no carryover (use it or lose it)
Incentive #3 - Property Tax Exemption (100%)
- Exemption Value: 100% of added home value from solar
- Estimated Annual Savings: $1,000-3,000/year
- 10-Year Value: $10,000-30,000 in cumulative savings
Incentive #4 - Santee Cooper Utility Rebate
- Rebate Amount: $600 per kilowatt (kW) up to 6 kW maximum
- Maximum Rebate: $3,600
- Eligibility: Santee Cooper electric customers only
Total Savings Calculation (Real Example)
Example: 7.7 kW System (Myrtle Beach Average)
| Base System Cost | $35,970 |
| Federal Credit (30%) | -$10,791 |
| SC State Credit (25%) | -$3,500 |
| Santee Cooper Rebate | -$3,600 |
| Net Cost After Incentives | $18,079 |
| Property Tax Exemption (10 yr) | -$25,000 |
| Effective Cost (10-year view) | -$6,921 |
Total Savings (First 10 Years): $42,891
How to Claim Your Solar Tax Credit: Step-by-Step Process
Claiming the solar tax credit is straightforward, but timing and documentation are critical. Here's the exact process.
Before Installation (Planning Phase)
- Verify Your Tax Situation: Must have federal tax liability to claim credit. Credit reduces taxes owed (can't create refund). Consult tax professional if unsure.
- Get Multiple Quotes: Obtain 3+ quotes from licensed solar installers. Verify contractors are licensed, bonded, insured.
- Schedule Installation Before Deadline: Target completion by mid-December (buffer for delays). Account for permitting (2-4 weeks), installation (1-3 days), weather delays.
During Installation (Documentation Phase)
- Collect Required Documentation: Itemized invoice showing all costs (equipment, labor, permits, inspections), manufacturer certifications, proof of installation completion.
- Ensure Installation Completes by December 31: System must be "placed in service" (operational) by deadline. Final inspection must be complete.
After Installation (Tax Filing Phase)
- File IRS Form 5695: Complete Part I for Residential Clean Energy Credit. Transfer credit amount to Form 1040, Schedule 3, Line 5. Include with April 2026 tax return.
- File SC Form SCH.TC-38: Complete "Solar Energy System" section. Calculate 25% credit (up to $3,500 maximum). Must file same year as installation (no carryover).
- Apply for Utility Rebate: Santee Cooper customers apply via online portal. Allow 4-8 weeks for processing.
⚠️ Common Filing Mistakes to Avoid:
- Filing before installation complete (must be operational)
- Forgetting to include labor costs (these qualify!)
- Missing state credit deadline (no carryover)
- Not keeping documentation (save for 7 years)
The Cost Comparison: Maintenance vs. Neglect
Without Maintenance
- Roof lifespan: 12-15 years
- Insurance claims often denied
- Emergency repairs cost 3x more
- Property value decreases by 5-10%
- Warranty becomes void
- Total 20-year cost: $35,000+
With Regular Maintenance
- Roof lifespan: 25-30+ years
- Insurance claims approved
- Prevent costly emergencies
- Property value protected
- Full warranty coverage maintained
- Total 20-year cost: $8,000-10,000
Don't Wait Until It's Too Late
Every day you delay costs you money. Get your FREE professional roof inspection today and discover exactly what condition your roof is in.
Emergency? Call our 24/7 hotline: (843) 877-5539
Frequently Asked Questions
About the Author
David Karimi
Senior Roofing Consultant & Solar Energy Specialist
David Karimi is a Senior Roofing Consultant and Solar Energy Specialist at WeatherShield Roofing with 15+ years of experience in the roofing industry and 8+ years specializing in coastal solar installations for South Carolina homeowners. He holds a South Carolina Roofing Contractor License and has helped over 100 Myrtle Beach homeowners successfully navigate the solar tax credit process while designing hurricane-rated systems for coastal environments.
The Bottom Line: Your Roof, Your Choice
Every day you wait is another day closer to that emergency call no homeowner wants to make. The statistics are clear: 80% of roofs fail prematurely, and 61% of homeowners can't afford the emergency repairs that follow.
What You Get with Weather Shield Roofing:
Don't Wait Until It's Too Late
Join thousands of smart Myrtle Beach homeowners who protect their investment with regular maintenance.
Emergency? Call our 24/7 hotline: (843) 877-5539
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