Proposed relaxation of solar panel regulations

Will there be more changes to the 25D solar tax credit?

Jump to a section: Will there be more changes? July 4 Update: President Trump signed the “One Big Beautiful Bill” (OBBB) into law, which terminates the 25D solar tax credit at the end of 2025. Homeowner-owned solar systems will need to be installed by December 31, 2025 to qualify for this 30% tax credit before it’s gone.

Should solar tax credits be phased down?

The solar industry is advocating a gradual phase-down of residential tax credits, instead of the abrupt end initially proposed by the House & the Senate (see Senate version below).

What is a solar tax credit?

The tax credit, known to most as the Investment Tax Credit (ITC), provides homeowners with a credit toward their federal tax bill worth 30% of their full solar installation cost. Other key incentives, like the EV and energy efficiency tax credits, may also be at risk.

Can a leased solar system qualify for the 48e tax credit?

Update: The final version of the bill passed by Congress allows residential leases and PPAs to qualify for the 48E tax credit through 2027. The House version of this bill closed off a path for homeowners to indirectly access the 48E tax credit through a leased solar system at the end of 2025.

What does the new solar tax bill mean for homeowners?

The proposed bill states that residential systems must be placed in service by December 31, 2025, in order to qualify. After this date, homeowners would lose access to this crucial financial incentive. In addition, the bill seeks to accelerate the phaseout of the commercial solar tax credit (Section 48E), reducing it to zero by 2032.

Could a new house proposal cut the 30% solar tax credit?

A new House proposal could cut the 30% residential solar tax credit by the end of the year. Why trust EnergySage? As subject matter experts, we provide only objective information. We design every article to provide you with deeply-researched, factual, useful information so that you can make informed home electrification and financial decisions.