A bill recently proposed in the United States House of Representatives threatens to end residential clean energy tax credits as soon as December 31, according to Electrek. 

If passed, the legislation would cut this 30% tax credit nearly a decade earlier than it was set to expire. 

What's happening?

Reflective of President Donald Trump's legislative agenda, the so-called One Big Beautiful Bill Act primarily aims to extend tax cuts from the 2017 Tax Cuts and Jobs Act while eliminating existing incentives like the residential clean energy tax credit and the electric vehicle tax credit. 

The bill as drafted would also cut federal assistance for food stamps and include work requirements for Medicaid. The New York Times reported in mid-May that it would "slash taxes, while providing the biggest savings to the wealthy, and steer more money to the military and immigration enforcement."

The clean energy and EV tax incentives currently on the chopping block originated as part of the Inflation Reduction Act — or IRA — and they were intended to support more widespread adoption of cleaner alternatives that also increase the country's energy independence from requiring as much foreign oil. 

Taking a closer look at the clean energy tax credit — also known as the Investment Tax Credit, or ITC — as one example, Electrek explained that this incentive was aimed at supporting homeowners with essentially a 30% discount on solar installation costs. It was then meant to be phased out over time until finally ending in 2035, rather than being suddenly shuttered, as proposed in the new bill.

Aaron Nichols of Exact Solar said, per Electrek, "If Congress eliminates the ITC without a reasonable phase-down, that's obviously going to cause immediate disruption within the solar industry." 

It also has the potential of cutting off many from a more affordable pathway to cleaner, cheaper energy that is more resilient to intensifying weather events capable of knocking out other power sources.

Why is this concerning?

These tax credits have been key in helping homeowners make upgrades that can benefit savings at home, individual resilience to power outages, community preparedness, and the planet as a whole. 

Continuing to take the example of solar panels, though they can save residents thousands of dollars over their lifespans, the upfront installation costs can be intimidating. The 30% savings through the IRA's tax credit have done a lot to address this challenge, along with companies like EnergySage, which functions like an Expedia.com for solar panels.

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While many residents have already leveraged the incentive to make the switch since the IRA was enacted in 2022, ostensibly many more — plenty of them only now becoming homeowners and standing to benefit from the credit — might be able to afford a transition to residential solar systems with another decade of the ITC in effect. 

That additional 10 or so years is also critical because increasing the number of people able to make the switch to solar and other renewables could lower the amount of heat-trapping pollution produced on our planet. This can mitigate Earth's overheating, with the potential to curb destructive weather events, reduce costly infrastructural damage, and improve human health.

In mid-May, the Associated Press reported, "Environmental groups warned the proposals would pave the way for more oil and gas industry activity on public lands and increase planet-warming greenhouse gas emissions in the United States."

What can be done?

House Republicans advanced the One Big Beautiful Bill out of the Budget Committee on May 18 with a vote of 17-16, with four holdouts, according to PBS.

The day after it advanced through the Budget Committee, NPR reported that the nonpartisan Committee for a Responsible Federal Budget has "[estimated] that the House bill is shaping up to add roughly $3.3 trillion to the debt over the next decade."

Meanwhile, the bill must still be approved by the full House and Senate to become law. 

The AP previously reported that House Speaker Mike Johnson "set a Memorial Day deadline to pass President Donald Trump's big bill of tax breaks and spending cuts."

This means there's still time to advocate for cost-cutting, pro-environment policies by sharing your opinion with elected representatives, regardless of your preferred political party. Taking local action like this can create ripple effects to highlight the economic and climate benefits of clean energy tax credits and rebates.

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