Asking Eartha: Key Facts on Federal Solar Tax Credits
TL/DR –
The One Big Beautiful Bill Act being debated in Congress could terminate the residential solar tax credit 180 days after it’s signed into law, a dramatic shift from the current timeline which guarantees a full 30% credit through 2032 under the Inflation Reduction Act passed in 2022. The bill, described as the “largest tax cut in history,” has already passed the U.S. House of Representatives and is now under consideration in the U.S. Senate, with a final version expected to be voted on by early July. If signed into law, homeowners would have just six months to install solar and qualify for the full federal tax credit, which could expire as early as 2026.
Is Your Solar Installation Still Eligible for Federal Tax Credit?
“Dear Eartha, I heard the federal tax credit for solar might change. If I install solar this year, am I still eligible?”
Summit County homeowners are concerned about their solar installations with the proposed One Big Beautiful Bill Act in Congress. This bill could impact clean energy incentives, including the established 30% federal tax credit that propelled solar adoption through programs such as Solarize Summit.
Understanding the One Big Beautiful Bill Act
The proposed bill, praised by supporters as the “largest tax cut in history,” could introduce significant changes to clean energy. Among its many tax code revisions, the bill suggests ending the residential solar tax credit 180 days following its enactment, a stark contrast from the current timeline guaranteeing the full 30% credit until 2032 under the Inflation Reduction Act of 2022.
Current Status of the Bill
The bill has already passed the U.S. House of Representatives on May 22, 2025, and is now under review in the Senate. The Senate’s version of the bill, expected by early July, will undergo a joint House and Senate conference committee to resolve differences if the Senate introduces amendments. Subsequently, the revised bill will require a re-vote by both House and Senate before reaching the President.
Should the bill become law this summer, homeowners will have just six months to install solar to qualify for the full federal tax credit, potentially expiring as early as 2026.
Implications for Summit County Homeowners
The 30% federal tax credit remains fully in place for those installing solar in 2025. However, if the bill becomes law, homeowners may have only six months to complete their installation and benefit from the tax credit.
Programs like Solarize Summit are available to expedite the homeowners’ process. Additional incentives up to $2,400 from High Country Conservation Center and the program’s installer, Active Energies Solar, can be accessed by those signing a contract before July 31. However, these incentives are limited and offered on a first-come, first-serve basis.
The Bottom Line
With the federal tax credit, local rebates, and the efficient Solarize Summit process, 2025 could be an affordable and impactful year to go solar. While national politics may seem distant, proposed federal changes could significantly impact local homeowners. Acting now ensures your solar savings, decreases fossil fuel reliance, and contributes to a cleaner, more sustainable energy future. Explore your solar options at HighCountryConservation.org or contact a local installer today.
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