US House Considers Accelerated End to Clean Energy Tax Credits

The US House Ways and Means Committee is considering ending the Section 25D residential energy tax credit by the end of 2025, nearly a decade earlier than the original 2034 deadline. This change would eliminate the current 30% tax credit for residential solar, potentially increasing system costs by around $8,978. Other credits, including the Section 45X advanced manufacturing credit and the new energy efficient home credit, are also set to end earlier than expected.
Additional provisions target clean electricity production and investment credits, restricting eligibility for certain foreign-linked entities. The bill proposes a gradual phase-out of production credits from 2029 to 2031, with no credits available after 2031. Transferability of these credits would also be removed for facilities starting construction two years after the bill’s enactment.
Industry organizations including SEIA, ACP, and ACORE warn that the proposed changes could raise energy costs, cause factory closures, eliminate tens of thousands of jobs, and reduce clean energy investment. ACORE noted that current tax credits supported $115 billion in investment and 3.5 million jobs in the previous year.