1.0Citizens Utility Boardhttps://www.citizensutilityboard.orgrich600338<blockquote class="wp-embedded-content" data-secret="54pCs5VvqE"><a href="https://www.citizensutilityboard.org/blog/2025/07/20/cub-qa-solar-and-ee-tax-credits-are-being-eliminated-so-what-now/"> CUB Q&A: Solar and EE tax credits are being phased out–so what now? </a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.citizensutilityboard.org/blog/2025/07/20/cub-qa-solar-and-ee-tax-credits-are-being-eliminated-so-what-now/embed/#?secret=54pCs5VvqE" width="600" height="338" title="“ CUB Q&A: Solar and EE tax credits are being phased out–so what now? ” — Citizens Utility Board" data-secret="54pCs5VvqE" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script type="text/javascript"> /* <![CDATA[ */ /*! This file is auto-generated */ !function(d,l){"use strict";l.querySelector&&d.addEventListener&&"undefined"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!/[^a-zA-Z0-9]/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),o=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),c=new RegExp("^https?:$","i"),i=0;i<o.length;i++)o[i].style.display="none";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute("style"),"height"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):"link"===t.message&&(r=new URL(s.getAttribute("src")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener("message",d.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",function(){for(var e,t,s=l.querySelectorAll("iframe.wp-embedded-content"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute("data-secret"))||(t=Math.random().toString(36).substring(2,12),e.src+="#?secret="+t,e.setAttribute("data-secret",t)),e.contentWindow.postMessage({message:"ready",secret:t},"*")},!1)))}(window,document); /* ]]> */ </script> [vc_row][vc_column][vc_column_text]In July, Congress passed H.R. 1, the federal budget reconciliation bill. Unfortunately, the  sweeping legislation phases out a series of clean energy tax credits. That includes two tax credits that have helped consumers significantly reduce home energy costs through solar power and energy efficiency upgrades. This Q&A gives you the details. What credits are being phased out?  Several, but CUB will focus on two that have been popular among consumers we talk to. These tax credits, which were created and/or extended by the 2022 federal Inflation Reduction Act, will be eliminated at midnight Dec. 31, 2025:  The “Residential Clean Energy Credit” (section 25D of the U.S. Tax Code) helps consumers recoup up to 30 percent of the costs of energy-saving projects, like installing rooftop solar and system batteries. (You must own your panels to receive the tax credit.) The “Energy-Efficient Home Improvement Credit” (section 25C of the U.S. Tax Code) helps people recoup up to 30 percent of the cost (up to $1,200/a year) for energy-saving projects, like a professional home energy audit; installing insulation; door, window and electric panel upgrades; and installing a high-efficiency air-conditioning unit. (There’s an additional credit of up to $2,000 available for buying an electric heat pump or heat pump water heater.) Why does CUB support the tax credits?  Programs that support solar and efficiency are cost-effective investments that have benefits far beyond the individual consumers who use them–including helping to lower energy prices for everyone and strengthening the power grid to prevent costly outages. Energy Innovation, a nonpartisan energy and climate policy think tank, estimates the federal legislation will increase household energy spending in Illinois by an average of more than $190 per year in 2030 and more than $400 per year in 2035. (Across Illinois, households will have to cover $12 billion in increased energy bills through 2035.)   If I’m considering installing solar or making energy efficiency upgrades, what should I do? If you are interested in taking advantage of the solar tax credit, CUB recommends that you explore if it’s realistic to install solar panels before the end of the year. The same goes for the energy efficiency tax credit and potential efficiency upgrades to your home. The understanding right now is that a solar installation must be fully completed before the end of the year to qualify for the credit. (Other solar industry observers have said signing a contract or placing a deposit is likely insufficient to qualify for the credit.) The same goes for energy efficiency upgrades–they must be completed before the end of the year.  While we encourage homeowners to move forward, keep in mind that a lot of other people will be trying to do the same thing to take advantage of the tax credits–so there are no guarantees that your solar system will be completed in time.   Also, in the wake of this legislation, CUB has lingering questions about how the provisions concerning the end of tax credits will be implemented. For example, the IRA allows consumers to roll over any excess tax credits to future years–it is unclear if that will be possible under the changes […]https://www.citizensutilityboard.org/wp-content/uploads/2017/03/CUB_IL_LogoBadgeRGBAdminLogo.png254254