Critical Update: House Bill Threatens Clean Energy Progress and Tax Credits

A Major Shake-Up in Clean Energy Policy

In a move that has sent shockwaves across the clean energy industry, the U.S. House of Representatives has passed a controversial bill—titled the “One, Big, Beautiful Bill”—that aims to drastically roll back key tax credit provisions established under the Inflation Reduction Act (IRA). If signed into law, this bill could have wide-ranging consequences for homeowners, investors, clean energy companies, and the future of renewable energy development in the United States.

🔍 What This Means for You: Key Takeaways

• 30% Clean Energy Tax Credits in Jeopardy:
  The bill would eliminate the IRA’s Production Tax Credit (PTC) and Investment Tax Credit (ITC)—which currently offer a 30% tax credit on clean energy projects—for any project that doesn’t begin construction within 60 days of the bill becoming law.
  

• Deadline for Project Completion:
  Even if your project begins within that window, it must be operational by December 31, 2028 to retain eligibility for the tax credit.
  

• Homeowners Beware:
  Tax credits for residential solar and battery systems are set to expire by the end of 2025, making now a critical time to act if you’re considering installing solar on your home.
  

• Advanced Manufacturing Credit (45X) Adjusted:
  This credit will stay in place until 2029, but will phase out gradually through 2032. It’s a small silver lining for U.S. manufacturing but offers limited help to everyday consumers.
  

• Stricter Rules on Foreign Involvement:
  New restrictions on so-called “Foreign Entities of Concern” (FEOC), especially targeting Chinese companies, could disrupt solar supply chains and impact pricing or availability.
  

• Uncertainty Around Credit Transferability:
  While the bill maintains some transferability options (which allow the selling of tax credits for cash), these have been limited for certain sectors, reducing flexibility for developers and investors.

🚨 Why This Is a Big Deal

This bill isn’t just a tweak to existing policies—it’s a potential reversal of America’s clean energy momentum. Clean energy professionals and economists warn this could lead to:

• Factory closures and job losses:
  Up to 300 solar and battery manufacturing facilities are at risk of shutting down, and as many as 300,000 clean energy jobs could disappear.
  

• Increased energy costs:
  With less renewable energy in the pipeline, consumers may face higher utility bills and greater dependence on fossil fuels.
  

• Disruption of U.S. energy security:
  Experts fear that undermining clean energy growth could destabilize the electric grid and hand energy technology leadership to countries like China.
  

📣 Industry Leaders Sound the Alarm

Abigail Ross Hopper, CEO of the Solar Energy Industries Association (SEIA), warned that this bill could “upend an economic boom” in clean energy that has brought tens of billions in investment and hundreds of thousands of jobs, especially in states that voted for President Trump.

Scott Elias, VP at CleanCapital, said the bill “dramatically increases project risk” and could “stall clean energy deployment” across the country.

Even Roy Long, CEO of the American Council on Renewable Energy (ACORE), emphasized the threat: “Recklessly disrupting tax incentives will undermine projects that are ready to come online, meet our nation’s growing energy needs, and create jobs.”

⏳ What Happens Next?

The bill now heads to the U.S. Senate, where lawmakers have the opportunity to amend or reject its most extreme provisions. Many in the renewable energy space are hopeful that the Senate will take a more measured approach, preserving the critical incentives that have fueled America’s clean energy transition.

Hopper concluded with a call to action:

“It’s not too late for Congress to get this right. The solar and storage industry is ready to work with the Senate on a smarter path forward.”

✅ What You Should Do Now

If you’re a homeowner or business owner considering a solar or battery backup system, act quickly:

1. Lock in your tax credit by beginning your project before the 60-day deadline (if the bill becomes law).
   

2. Consult with a trusted solar company to ensure you meet eligibility requirements.
   

3. Stay informed as the bill moves through the Senate—things could change, for better or worse.
   

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🔧 We Can Help

At ES Solar, we are closely monitoring this legislation and helping homeowners and businesses take advantage of existing tax credits while they’re still available. Don’t wait until it’s too late—reach out for a free solar and backup battery consultation today.