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Act Now: 30% Solar Tax Credit May End Soon—Here’s Why You Shouldn’t Wait

EnergySage · last updated

As President and COO of EnergySage, I’m not typically one to sound alarm bells. But today, I need to be direct with you about the state of clean energy policy: Clean energy programs that directly benefit people like you are under attack on Capitol Hill. Specifically, the residential solar tax credit—which puts thousands of dollars back in average homeowners’ pockets—is at serious risk of ending early. If you’re considering going solar now or in the near future, my best advice is not to wait any longer.

Here’s the situation: The current budget bill moving through Congress proposes ending this incentive nearly a decade earlier than planned. Instead of continuing through 2034 as originally legislated in the Inflation Reduction Act, the 30% residential Investment Tax Credit (ITC), Section 25D of the U.S. Tax Code, could disappear at the end of 2025. For the average American, that means losing out on $9,000 in savings if you don’t go solar this year.

The ITC has democratized solar, accelerated the American transition to clean energy, and created thousands of American jobs. Yet the current House bill threatens to terminate this pivotal program, which would deal a huge blow to thousands of small businesses and millions of homeowners across America—both in red and blue states.