Could the Solar Tax Credit be eliminated...
- Katie Burgess
- May 15
- 2 min read
A new House proposal could eliminate the 30% residential solar tax credit by the end of 2025
In breaking news this week the House Ways and Means Committee passed a draft bill that would eliminate the Residential Solar Tax Credit by December 31, 2025. It's certainly an aggressive change to the program, which was only recently extended to 2034 as part of the Inflation Reduction Act, cutting it short by a whole decade!
What happened? On May 13th the House Ways & Means Committee passed a draft bill that would eliminate the Residential Solar Tax Credit by December 31, 2025.
Although this is a 30% residential solar tax credit we have had many customers take advantage of it for going solar on their boat. This is because a boat can be classed as your home (first or second) if it has a head, galley & bunk and is registered in the US.
Although a system on your boat is much smaller than one going on the roof of your house 30% can still be a substantial saving. The 30% is on the "total system cost on all equipment required to place the system in service" which includes solar panels, wiring, breakers, charge controllers, inverters, battery monitors, installation labor expenses etc. In more recent language it's easier to also include a battery storage component. 30% back on a lithium upgrade to say BattleBorn would mean buy 4x batteries and one of them is free, nice!
Some customers have also been able to include arches, bimini frames, or canvas retrofits, as well as even the construction of a hard top bimini - all possibly eligible as system costs if they were required to place the system in service on your boat.
What's Next? The bill moves to the Budget Committee followed by a full House vote before heading to the Senate.
The Federal Tax Credits have been cut short and extended again in the past and hopefully this is another veiled threat of the credit being taken away. Maybe the timeline will not be cut short so aggressively and we see it phased out in say 5 years? Either way it would be a shame to miss out on, so be sure to take advantage of these savings before they're gone and go solar aboard today.
We're here to help keep you informed of these changes but as always please consult with your accountant or tax advisor for the latest and most accurate information. Drop us a line with any questions or check our tax credit page for more details.
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