Made‑in‑America Solar Pays Extra: How the New 10% ‘Domestic‑Content’ Bonus Can Supercharge Your 30% Federal Tax Credit

If you’re planning to install solar panels in 2025, there’s breaking news you don’t want to miss—“Made in the USA” solar components can now boost your federal tax credit by an extra 10%. That means you could qualify for a 40% total tax credit on your residential solar installation just by choosing American-made equipment.

In February 2025, the U.S. Treasury and IRS released Notice 2025‑8, providing detailed guidance and a safe-harbor checklist for homeowners looking to claim this new Domestic Content Bonus Credit. This is a major win for solar buyers and the U.S. clean energy manufacturing industry alike.

Let’s break down what this new opportunity means for homeowners—and how to take full advantage of it.

What Is the Domestic Content Bonus Credit?

Under the Inflation Reduction Act (IRA), the federal government introduced a new incentive aimed at boosting domestic clean energy manufacturing. The Domestic Content Bonus Credit allows homeowners to claim an additional 10% tax credit on top of the 30% Residential Clean Energy Credit, if their solar installation uses a certain percentage of U.S.-manufactured components.

This means you could reduce the cost of your solar system by up to 40% if it meets domestic content requirements.

✅ 30% Residential Clean Energy Credit (standard)
➕ 10% Domestic Content Bonus Credit (if eligible)
= 💰 40% total federal tax credit

How Do You Qualify for the Extra 10%?

According to IRS Notice 2025‑8, your system must meet the following requirements:

• Solar Modules (Panels): Must be at least 40% made in the U.S. by cost of materials and manufacturing.
• Inverters & Racking: Also must meet the 40% U.S.-content threshold.
• Documentation: Installers or manufacturers must provide attestations or certifications confirming compliance with domestic content rules.

The IRS provides a “safe-harbor” checklist to simplify the process and help homeowners and installers verify if a system qualifies.

📋 Source: IRS – Domestic Content Bonus Credit
📋 Tax Alert: RSM – Notice 2025-08 Breakdown

Why This Matters for Homeowners

💸 Bigger Tax Savings

This new bonus could translate into hundreds or even thousands of dollars in additional tax savings, depending on the size of your solar project.

For example:

• A $25,000 solar installation qualifies for the 30% tax credit = $7,500
• If you meet domestic content requirements, you get another $2,500 off
• Total savings: $10,000 (or 40%)

🏡 Boosts Home Value and Energy Independence

Choosing a U.S.-made solar system doesn’t just save you money—it also contributes to:

• Enhanced home resale value
• Lower reliance on volatile energy markets
• Cleaner, more resilient domestic energy production

🇺🇸 Supports American Manufacturing

By going with Made-in-USA solar panels and components, you’re helping create local jobs, strengthen domestic supply chains, and reduce carbon emissions from international shipping.

What Should You Ask Your Installer?

If you’re going solar in 2025, be sure to ask your installer:

• Do you offer systems with U.S.-made solar panels, inverters, and racking?
• Can you provide documentation for the Domestic Content Bonus Credit?
• Will my system meet the 40% content threshold required by the IRS?

At our company, we stay on top of all IRS guidance and sourcing updates to help our customers maximize every available tax benefit—including this new 10% bonus.

Is Now the Time to Go Solar? Absolutely.

With:

• ✅ A 40% federal tax credit now possible
• ✅ Rising utility rates
• ✅ Record-breaking solar technology adoption
• ✅ And increased U.S. manufacturing capacity

2025 is the smartest time yet to go solar—especially if you’re looking to future-proof your home while taking full advantage of historic financial incentives.

Final Thoughts: Don’t Miss Out on the Bonus

The Domestic Content Bonus Credit is a limited-time opportunity that rewards smart, sustainable investments in solar energy. Choosing U.S.-made solar equipment not only helps you save more but also supports a cleaner, stronger American energy economy.

🌞 Want to find out if your home qualifies for the extra 10% tax credit?
Contact us today for a free consultation, and we’ll walk you through your options with domestic-compliant solar systems that maximize your savings and your impact.