## Status of Solar Incentives Under Trump in 2025
**Current Law and Proposed Changes**
As of May 2025, the 30% federal solar tax credit—known as the Investment Tax Credit (ITC) for businesses and the Residential Clean Energy Credit for homeowners—remains fully in place. This incentive is scheduled by law to run through 2032, covering installations of solar panels, battery storage, and related equipment[2].
However, significant changes are underway. House Republicans recently introduced legislation that would repeal the solar tax credit at the end of 2025, instead of letting it continue through its originally planned expiration. If this proposed legislation becomes law, both residential and commercial solar tax credits would end on December 31, 2025, eliminating the 30% incentive starting in 2026[2][3][5].
**Potential Impacts**
– The end of these incentives could substantially raise the cost of going solar for homeowners and businesses, potentially deterring installations and slowing clean energy adoption at a time when energy demand is climbing rapidly, especially due to the rise of AI and data centers[2][3].
– Industry groups like the Solar Energy Industries Association (SEIA) warn the legislative change could result in the loss of up to 300,000 jobs and prevent the opening of nearly 300 solar and battery storage factories. The US could lose an amount of solar generation capacity by 2030 equivalent to powering the state of Pennsylvania for a year[3].
**Trump Administration’s Stance**
President Trump has consistently been critical of clean energy tax credits, labeling them as “a green new scam” and expressing clear intentions to redirect funding toward fossil fuel development[4]. Early in his second term, Trump issued executive orders that paused funding for unspent Inflation Reduction Act (IRA) disbursements, specifically excluding solar and wind projects from his administration’s definition of “energy.” This pause has already caused delays and cancellations for multiple clean energy projects[4][5].
## Summary Table: Solar Incentive Status Under Trump (2025)
| Aspect | Current Status (May 2025) | Proposed Change | Likely Impact |
|—————————|————————————–|—————————-|————————————–|
| Solar Tax Credit (ITC) | 30% through 2032 (per existing law) | Ends Dec 31, 2025 (if bill passes) | Higher solar costs, fewer installations, job/economic losses[2][3][4] |
| Trump Policy Direction | Reduce/abolish clean energy credits | Prioritize fossil fuels | Halted funding, project delays |
## Conclusion
While the 30% solar tax credit is still in effect as of mid-2025, proposed Republican legislation—supported by President Trump—aims to terminate these incentives at the end of this year. If passed, this move would effectively “kill” major federal solar incentives much earlier than previously scheduled, potentially reversing recent progress in US renewable energy adoption[2][3][4][5].