Solar Tax Credits Ending 12/31/2025

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (the OBBB), which significantly rolls back many of the core tax incentives that clean energy projects have relied on since the passage of the Inflation Reduction Act in 2022.

The One Big Beautiful Bill (OBBB) has a negative impact on the 30% residential solar tax credits: the residential solar tax credit (25D) is being terminated after December 31, 2025, making the 2025 tax year the final chance to qualify for this homeowner incentive.

The OBBB also has a negative impact on commercial solar tax credits 48E and 45Y. Under the new law, tax credits for wind and solar projects phase out much sooner. To qualify, these projects must either be completed by the end of 2027 or begin construction within the next 12 months. This compressed timeline will likely force developers to accelerate their project schedules or risk losing critical tax credits.
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As the deadlines approach demand for solar installations is rising. For homeowners and businesses considering solar, you need to act now to lock in the savings. Time is running out.