"The One, Big, Beautiful bill" text seeks to end solar tax credit on 12/31/25

[rcht148]

The House Ways and Means Committee just released the full text of the bill that is dubbed as "The One, Big, Beautiful bill".
Is is not passed yet, so it can change but the answer for the question on the mind of most people in this forum:

TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT
(a) IN GENERAL.—Section 25D(h) is amended by striking ‘‘December 31, 2034’’ and inserting ‘‘December 31, 2025’’.

Source: https://docs.house.gov/meetings/WM/WM00/20250513/118260/BILLS-119-CommitteePrint-S001195-Amdt-1.pdf, page 221

Sidenote:
* This also ends ENERGY EFFICIENT HOME IMPROVEMENT CREDIT on the same date (for things like heat pumps, insulation and so on)
* This also ends CLEAN VEHICLE CREDIT ($7500 for EVs) on the same date with 1 extra year for those EV manufacturers that have sold under 200k vehicles (reverts this back to what it was before IRA was passed).
* Phasing out ADVANCED MANUFACTURING PRODUCTION CREDIT after 12/31/2031 (incentive to manufacture solar components)

 

[time2roll]

Anything large is in the pipeline for this year so no worries for me. Of course this was a campaign promise so the majority should be pleased.
IMO considering the deficit need to tax the items they want reduced rather than incentives to encourage the agenda.

See ya over in chit chat.

 

[M Dub]

I have solar and I own two Tesla's and am totally onboard with ending the credit. These technologies need to be able to survive without government subsidies. If they can't then they just aren't ready.

 

[SplitUniverse]

I have solar and I own two Tesla's and am totally onboard with ending the credit. These technologies need to be able to survive without government subsidies. If they can't then they just aren't ready.

That's true long term, like over a few life cycles of a good.
If we talking about heating / HVAC system, cars, large home appliances, etc then a life cycle is probably close to 10 years on average. multiply that by 4-5 and you get to half a century. So even if the technology is viable and competitive it will take 40-50 years for it to take over the existing stuff completely.
If you want change TODAY you have to tip the scales.
Another way to tip the scales would be to charge a "carbon tax" on anything end everything we consume, including the gas, natural gas, metal products, transportation, etc. Basically anything that is non renewable in short term. Would that make anyone more happy?

 

[Brett V]

A disproportionate percentage of the tax credits are going to vendors by way of higher prices and less than honest leased grid tie system sellers anyway. The subsidies artificially inflate prices and are only available to people with enough tax burden to benefit from a tax credit. Lower prices will make solar more affordable with a shorter ROI to people who otherwise wouldn’t be able to afford it.

 

[billvon]

I have solar and I own two Tesla's and am totally onboard with ending the credit. These technologies need to be able to survive without government subsidies. If they can't then they just aren't ready.

Provided you end the subsidies on oil, coal, gas and nuclear at the same time - agreed.

If not, then oil, gas, nuclear and coal just aren't ready for prime time.

 

[Brett V]

Provided you end the subsidies on oil, coal, gas and nuclear at the same time - agreed.

If not, then oil, gas, nuclear and coal just aren't ready for prime time.

I don’t know of any consumers getting subsidies for using fossil fuels or nuclear power.

 

[time2roll]

I have solar and I own two Tesla's and am totally onboard with ending the credit. These technologies need to be able to survive without government subsidies. If they can't then they just aren't ready.

Yes and considering the budget position it might be time to discourage certain products with additional tax rather than incentives for the desired items.

 

[billvon]

I don’t know of any consumers getting subsidies for using fossil fuels or nuclear power.

They go directly to the industries themselves, which of course is worse.

 

[fatjay]

They go directly to the industries themselves, which of course is worse.

It depends. The industries could be in the black if not for government over-regulation and bureaucracy. Bureaucracy that the bulk of us don't have to deal with and doesn't add more expense. I had to pay a $75 permit fee for my huge system.

 

[glandpuck]

I have solar and I own two Tesla's and am totally onboard with ending the credit. These technologies need to be able to survive without government subsidies. If they can't then they just aren't ready.

Then please make certain that all of your elected representatives know how you feel and that you also think this should apply equally to oil and natural gas producers as well as coal.

 

[glandpuck]

I don’t know of any consumers getting subsidies for using fossil fuels or nuclear power.

The corporations get the subsidies, not the consumers which is why you don't know.

 

[glandpuck]

It depends. The industries could be in the black if not for government over-regulation and bureaucracy. Bureaucracy that the bulk of us don't have to deal with and doesn't add more expense. I had to pay a $75 permit fee for my huge system.

Do you mean by over-regulation and bureaucracy those rules and regulations to minimize air pollution, ground pollution and contamination as well as pollution of rivers and streams? If that's not it, then what exactly are you referring to?

 

[fatjay]

Do you mean by over-regulation and bureaucracy those rules and regulations to minimize air pollution, ground pollution and contamination as well as pollution of rivers and streams? If that's not it, then what exactly are you referring to?

Annual pentesting requirements, both computer and physical landscape. Lobbists are expensive. And there's many more.

There's a lot of hoops plants have to jump through due to government inefficiencies, which compound the issue. How is it every plant outside the US can opperate at a fraction of the cost but higher safety standards?

 

[Brett V]

The corporations get the subsidies, not the consumers which is why you don't know.

I do know. The point is this was a totally irrelevant comparison. Solar tax credits go to the end consumer while corporate subsidies and tax breaks go to the supplier.

 

[robby]

I do know. The point is this was a totally irrelevant comparison. Solar tax credits go to the end consumer while corporate subsidies and tax breaks go to the supplier.

How is it irrelevant?
I would think you would prefer that hard working Americans who pay lots of Taxes would get a Tax break rather than billion dollar companies negotiating with crooked politicians being given our tax money.

 

[SunDave]

I'm not coming at this from a political angle, but one of reality. It is possible that costs come down if the credit expires. There are times when subsidies and loans only increase the cost of an item. Plenty of examples of that (cars, college, housing).

Who I do see it hurting the most is the scam type solar companies that use it is a line item in their proposals, and bury the "true" cost. IF it does seem to be ending, there will also be a mad push by said companies to "get in before it all ends!". Nothing new under the sun.

 

[Brett V]

How is it irrelevant?
I would think you would prefer that hard working Americans who pay lots of Taxes would get a Tax break rather than billion dollar companies negotiating with crooked politicians being gives our tax money.

First off, it’s not an across the board tax break. It’s a tax credit so people with lower incomes who don’t have a high enough tax burden to take the credit are excluded. It only benefits higher income earners and discourages competitive pricing. Government subsidies to industries is a totally different issue and has no bearing whatsoever on this.

 

[HarryN]

The most important thing is to eliminate tax credits and subsidies for products made outside of North America for everyone and every industry.

 

[Q-Dog]

First off, it’s not an across the board tax break. It’s a tax credit so people with lower incomes who don’t have a high enough tax burden to take the credit are excluded. It only benefits higher income earners and discourages competitive pricing. Government subsidies to industries is a totally different issue and has no bearing whatsoever on this.

The tax break is just an enticement to get people to look at installing solar ... an attempt to create an industry that will eventually sustain itself. You have to encourage people with money to buy solar, because people without money spend all their money on more important stuff, like food and clothes, instead of solar. I guess, instead of giving tax breaks to people with money, we could just give solar panels to people without money?

I have an idea: Maybe we could create some programs that help poor people insulate their houses and replace old appliances, so they can lower their utility bills? Maybe even create some programs that help them pay their bills?

 

[Nimrod5]

I don't make enough to owe federal income tax so maybe my heirs can collect the credit.

If the credit is eliminated, demand will fall and prices will come down, especially if tariffs are removed. I will pay less for more panels and batteries. There is currently way too big a markup on solar equipment. Example, Schneider XW Pro 6848 was discontinued and dropped from $3800 to $1200.

 

[Brett V]

The tax break is just an enticement to get people to look at installing solar ... an attempt to create an industry that will eventually sustain itself. You have to encourage people with money to buy solar, because people without money spend all their money on more important stuff, like food and clothes, instead of solar. I guess, instead of giving tax breaks to people with money, we could just give solar panels to people without money?

I have an idea: Maybe we could create some programs that help poor people insulate their houses and replace old appliances, so they can lower their utility bills? Maybe even create some programs that help them pay their bills?

The solar industry is perfectly capable of sustaining itself now.

 

[Mattb4]

First off, it’s not an across the board tax break. It’s a tax credit so people with lower incomes who don’t have a high enough tax burden to take the credit are excluded. It only benefits higher income earners and discourages competitive pricing. Government subsidies to industries is a totally different issue and has no bearing whatsoever on this.

The rich folks need tax breaks to buy solar. Us common folks have to come up with the full amount. Bit like the difference between what you pay the Doctor when you lack insurance and what the large insurance company allows the Doctor to charge them.

 

[billvon]

It depends. The industries could be in the black if not for government over-regulation and bureaucracy.

I remember the days when rivers would sometimes catch on fire. Before my time we had the Triangle Shirtwaist fire and the Donora tragedy. Glad we are past that.

I agree some industries are over-regulated today, but the answer is not a return to burning rivers, incinerated Americans, eagles driven to near-extinction and killer smogs. There will NEVER be a level of regulation that companies are happy with, since it cuts into their profits. There's a middle ground that we have to find - but it certainly can't come from the companies themselves. There will always be some cost there.

Fortunately everyone here, from solar power companies to oil companies, now have to follow the same rules (OSHA, EPA etc) so no one industry has an advantage over another in that respect.

 

[billvon]

First off, it’s not an across the board tax break. It’s a tax credit so people with lower incomes who don’t have a high enough tax burden to take the credit are excluded. It only benefits higher income earners and discourages competitive pricing. Government subsidies to industries is a totally different issue and has no bearing whatsoever on this.

California does the opposite. One example is the Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) program, which is an additional rebate of up to $3/watt for low income families (up to $51K.) It makes installations close to free for such families.