As the Senate debates the reconciliation bill before them, the Solar Energy Industries Association (SEIA) worked closely with Sen. Hickenlooper’s office to support his work on an amendment to extend the 25D residential solar tax credit through the end of 2026.
The Section 25D residential tax credit is available to taxpayers who purchase a solar energy system or a standalone energy storage system for their home. This credit was cut cut in the original House version of the budget reconciliation and remains cut in the Senate version. If the bill moves forward unchanged, it means that any projects not placed in service by the end of 2025 will be ineligible for a tax credit.
In support of the amendment, SEIA said it plans to send a letter to all 100 senators urging their support for the amendment, which would “strengthen American energy independence, increase consumer choice, and support small businesses in the clean energy sector.”
The letter states:
The residential solar industry is a powerful engine for job creation, innovation, and entrepreneurship. As written, the legislation could be catastrophic for thousands of small solar businesses, manufacturers, and workers that power American energy dominance.
SEIA estimates that eliminating the tax credit risks the loss of 250,000 jobs and puts 1,500 small businesses at risk.
SEIA also points out that residential solar saves ratepayers money at a time of rising energy costs. The tax credit incentives ratepayers to make the choice to invest in clean energy. Furthermore, the letter notes that most of the equipment used in residential solar installations is made in the United States, as the industry is increasingly onshoring its supply chain.
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Considering that the old Solar Tax credits before the Biden administration were in the sunset Phase before the IRA bill was passed to pop-up the Tax credit to 30% again, this would give a new legislature in 2027, after the midterms, to re-write a new tax credit bill thus keeping the industry alive even if in suspense on what tomorrow will bring.