As part of the One Big Beautiful Bill—officially H.R. 1 passed by the House on May 22, 2025—Congress is moving to terminate the 30 % Residential Clean Energy Credit (Section 25D) far earlier than expected under the Inflation Reduction Act.

Originally set to scale down gradually through 2032, the credit is now slated to end on December 31, 2025, or 180 days after enactment under the Senate draft.

Timeline:

• Through end of 2025: full 30 % credit remains available.

• Starting 2026: credit disappears entirely for residential solar and battery installations

The Senate version may “soften” the cutoff timing, but the intent remains: phase out residential solar incentives aggressively .

Who’s impacted?

• Homeowners: Must install and activate by late 2025 to qualify. After that, the 30 % credit vanishes .

What’s next?

• The bill is under Senate review, with a July 4 target for reconciliation kiplinger.com+8reuters.com+8investopedia.com+8.

• Senators are debating modifications—some seek a more gradual phase-down rather than an abrupt cut barrons.com+15reuters.com+15greenlancer.com+15.

• Public pressure and lobbying continue as affected industries push to preserve incentives.

Should you act now?

Yes—if you’ve been considering solar or battery storage, install and activate by December 31, 2025, to lock in the full 30 % credit. After that, the federal incentive shrinks to zero.

Trump’s One Big Beautiful Bill aims to eliminate the 30 % solar tax credit by end‑2025—nearly seven years earlier than planned under current law. This threatens to slow residential solar adoption, jeopardize green jobs, and raise energy costs for homeowners. The plan is currently advancing through the Senate, with a decision expected before July 4.