Dear Reader —this is not a drill.

Buried inside the Trump administration’s proposed “Big Beautiful Bill” is something big. But it sure ain’t beautiful: it represents a massive rollback/deletion of the federal solar tax credits and financial incentives for both residential and commercial/grid-scale investment. We’ve seen (and reported on) political attitudes and proposed policy drafts which could direct potential headwinds vs. clean energy legislation floating around in various state and U.S. Congressional committees over the past few months. This is first time we can all see it in a complete, final draft form -and attached to a specific bill coming up for a vote.

These federal solar tax credits and incentives (aka The ITC)—enacted under President Bush in 2005, have made solar more affordable for millions of Americans, supported over 280,000 clean energy jobs, and helped Texans power nearly 5 million homes with solar. Now, they’re on the chopping block.

*Click here now for list of single-click solar advocacy tools you can access in this moment to let your voice be heard!*

What’s at stake?

Well, if this gets passed into law, the outlook isn’t bright. So, what are we looking at here?

Higher electric bills: Repealing the credit could raise average Texas household electricity bills by up to $29/month.
Job loss: Our state alone supports over 12,000 solar jobs. The repeal could cost 100,000+ U.S. clean energy jobs by 2040.
Grid reliability: ERCOT and grid experts agree we need more renewable energy, not less. Solar generation (along with battery storage (BESS)) are key to stability as demand surges.
National progress: The U.S. now ranks #3 in global solar manufacturing, up from #7. This repeal halts that momentum bigly.

This potential new legislation would starkly contrast with our state’s (mostly bipartisan) embrace and adoption of renewable energy initiatives -and could seriously dampen the forward momentum we broadly support!

Why It Matters for us Texas Folks—In Real Terms

Texas is leading the nation in solar growth. Over 6.6% of our state’s power now comes from solar, and it’s not slowing down. In fact, 92% of new power generation in the past 4 years came from wind, solar, and storage. Energy grid projections published by ERCOT and the Texas PUC are ringing alarms about the viability of our grid after 2026 – at which point our beloved state’s electrical demand is expected to exceed BOTH total installed power line capacity AND generation capacity. Any federal or state policy-making to slow the adoption of renewable power makes the situation only that much more dire.

This is your energy freedom they’re threatening. This is your return on investment. And this is your chance to push back.federal solar tax credit repeal

Both Solar Income Tax Credits and Other Tax Incentives are Being Targeted. Both matter.

When people talk about the “30% solar tax credit,” they’re usually thinking about the Residential Clean Energy Credit—a federal income tax credit that allows homeowners to deduct 30% of the cost of purchasing and installing their smart solar and battery energy storage system from their tax bill. This has been a game-changer for Texas families investing in solar and energy storage —and it’s currently under threat.

But that’s just one part of the current federal solar incentive ecosystem that’s at risk. There’s also a set of commercial and utility-scale solar tax credits that help enable adoption of everything from community solar to school districts to municipal and grid-scale projects. The proposed “One Big, Beautiful Bill” doesn’t just target residential—it threatens to unwind the commercial side too.

Residential Solar Tax Credit at Risk (ITC, Section 25D)

Applies to: Homeowners installing solar or battery systems on a primary or secondary residence
Value: 30% of total system cost, credited against personal income taxes
Expires: Currently set to phase out gradually through 2034—but the bill proposes ending it in 2025

Commercial and GRID-Scale Solar Incentives at Risk (ITC, Sections 48 & 48E)

Applies to: Businesses, nonprofits, schools, and large-scale solar developers
Value: 30% base credit, up to 50% for projects including U.S.-manufactured tech, low-income areas, or energy communities
Transferable: Can be sold or transferred—allowing flexible project financing
Includes depreciation: Businesses can claim MACRS depreciation in addition to tax credits
Big Beautiful Bill impact: Would begin phasing these credits down starting in 2029 and eliminate transferability and bonus adders

The 30% residential tax credit makes solar more accessible for homeowners—but the commercial incentives power the growth of clean energy infrastructure across Texas and the nation. Rolling back either one is short-sighted. Rolling back both? That’s a direct hit to our energy economy, grid stability, and job growth. federal solar tax credit repeal

These tax credits are doing exactly what they were designed to do: lower costs, drive investment, and create energy independence. If the “Big Beautiful Bill” passes as written, all those gains are at risk.

Texans Support Solar.

Recent polling shows:

80% of Texans support clean energy tax incentives.
73% believe solar and storage make the grid more resilient.
82% want a level playing field with oil & gas—not more red tape for solar.

What You Can Do (Right Now!)

Let your voice be heard! It only takes a minute—and it matters more than ever:

Or call the U.S. Capitol switchboard directly: (202) 224-3121

Bonus Points: Reach Out to Our State’s Senators

And let them know you’re watching how they vote.

You can also find your U.S. House Representative here.

federal solar tax credit repeal

Let’s Be Loud, Texas.

We’ve always stood up for independence, and clean energy is no different. Tell Congress: Keep your hands off the 30% tax credit. Let solar compete, grow, and continue to power more American communities.

Thanks for being part of the NATiVE Solar family, and for standing up now to make your voice count.

—The NATiVE Solar Team