On May 22, 2025, the U.S. House of Representatives narrowly passed the “One Big Beautiful Bill Act,” a tax and spending bill that includes provisions to eliminate key clean energy tax credits, with most notably the 30% federal Investment Tax Credit (ITC) for residential solar installations. This move threatens to undermine the progress made under the Inflation Reduction Act (IRA) of 2022.
What’s in the Bill?
The legislation, which just passed by a 215–214 vote in the House, proposes to:
Terminate the 30% Residential Solar Tax Credit (ITC): The bill would end the ITC by December 31, 2025, ahead of its previously scheduled expiration in 2034.
Eliminate Tax Credits for Leased Solar Systems: The bill would remove eligibility for tax credits on leased residential solar systems.
Accelerate Phase-Out of Business Tax Credits: Commercial solar projects would have to begin construction within 60 days of the bill’s enactment and be completed by the end of 2028 to qualify for tax credits.
Remove Transferability of Manufacturing Tax Credits: The legislation would eliminate the ability to transfer certain manufacturing tax credits.
What’s Next?
The bill now moves to the Senate, where its provisions may be moderated or may be passed in its entirety.
What Can Homeowners Do?
Given the potential elimination of the 30% Solar Federal Investment Tax Credit by the end of 2025, homeowners considering solar installations may want to act promptly to take advantage of the existing incentives. Installing a solar energy system before the proposed deadline could result in substantial savings.
Call Sunlux today 877-467-6712 or visit our website at www.sunlux.com and let us show you how much solar could save you!