updated May 24, 2025
As veterans of the solar industry with decades of hands-on experience, we’ve seen how smart policy can drive real progress. But the recent federal budget bill passed by the U.S. House of Representatives threatens to undo much of that hard-earned momentum.
This sweeping legislation includes provisions that would abruptly eliminate the federal tax credits that have helped make solar and wind energy affordable and accessible across the country. If enacted by the Senate, these cuts would represent one of the most damaging setbacks to the clean energy transition we’ve seen in decades.
Key Provisions of the House-Passed Bill:
- Immediate Termination of Tax Credits: The bill proposes an abrupt end to the Investment Tax Credit (ITC) and Production Tax Credit (PTC) for solar and wind projects, eliminating the previously suggested five-year phase-out period. (Heatmap News)
- Elimination of Transferability: It removes the transferability of these tax credits, a mechanism that facilitated approximately $25 billion in private investment in 2024 alone.
- Broader rollbacks, including cuts to credits for electric vehicles and battery storage—tools we need to build a more resilient, low-carbon grid.
Implications for Vermont:
Vermont has been a leader in embracing renewable energy solutions, with solar power playing a pivotal role in our state’s clean energy portfolio. The abrupt termination of these federal incentives could:
- Delay or cancel planned solar installations
- Raise energy bills for homes and small businesses
- Stall job growth in one of the fastest-growing sectors of our economy
Looking Ahead:
The bill now moves to the Senate, where its fate remains uncertain. Several Senate Republicans have expressed reservations about the severity of the proposed cuts, suggesting potential amendments to preserve some clean energy incentives. (Politico)
At Building Energy, we’ve spent decades helping Vermonters reduce fossil fuel use and embrace sustainable solutions. Tax incentives don’t just help homeowners—they keep our local clean energy economy thriving. Losing them too soon risks pushing us backward, just when the climate crisis demands we move faster.
We’ll be watching this bill closely. In the meantime, we remain committed to helping our clients design and build efficient, renewable-powered homes and businesses, no matter what challenges come from Washington.
Contact us today to find out how Building Energy can help you capture the 30% tax credit before it goes away.
For more clean energy updates, visit our Resources section: