If you’ve been considering solar for your home, now may be your last chance to lock in the full 30% federal tax credit. A bill passed by the House on May 22, 2025 proposes ending the Residential Clean Energy Credit on December 31, 2025—seven years earlier than originally scheduled under the Inflation Reduction Act (IRA).
With a Senate vote expected before July 4, time is of the essence. To qualify for the credit, your system must be fully installed and inspected by year-end.
📜 What’s Changing: From IRA to New Legislation
Current Law: 30% credit through 2032, phasing down to 0% by 2035.
Proposed Change: Ends the credit on Dec 31, 2025.
No “start of construction” clause — systems must be installed and inspected to qualify.
💸 What It Could Cost You
Up to $9,000 lost in savings on an average $30,000 system.
Third-party systems (leases/PPAs) may lose eligibility retroactively for 2025.
Industry impact: Analysts predict a 40% drop in installations, higher costs, and job losses.
Confirm an installation timeline: Make sure your system will be installed and inspected before 12/31/25.
Review your financing: Direct purchase or homeowner financing is recommended to ensure eligibility.
Contact your Senators: Urge them to preserve the Residential Clean Energy Credit.
🗳️ What to Watch in the Senate
The bill passed the House and now heads to the Senate, with a vote likely before July 4, 2025. Some Senators are proposing amendments to allow more time. Industry leaders including Tesla and tech companies are lobbying to save the credit.
📈 Marketing Takeaway: “Now or Never”
Communicate urgency clearly: Deadline is Dec 31, 2025. Must be installed and inspected—not just signed.
Explain the benefit: 30% tax credit = ~$9,000 in savings.
Address installation backlogs: Permitting and inspections can take weeks—slots are filling fast.
💬 “The Johnson family locked in their credit in May—you still have time, but the clock is ticking.”
🔧 Next Steps for Homeowners
Compare at least two solar quotes.
Ask providers about “placed in service” deadlines.
Talk to your tax advisor about eligibility and paperwork.
Contact your local Senators—every voice matters.
Bookmark this blog—we’ll post updates after the Senate vote.
☀️ Bottom Line
Install before Dec 31, 2025 to lock in the full 30% federal tax credit. You’ll save money, increase home value, and support clean energy in California.
