Protect Our Energy Future, Save the ITC Solar Tax Credit!

What Happened: The Investment Tax Credit (ITC) is Under Fire

The Investment Tax Credit (ITC) is a critical federal policy that has been instrumental in the growth of clean energy in the United States, particularly solar power. It provides a significant tax credit (historically as high as 30%) for the cost of installing renewable energy systems, making these technologies more affordable for homeowners, businesses, and utility-scale projects.

However, this vital incentive is currently facing a significant threat. Based on information from earlier this year (June 2025), a reconciliation bill passed by the House of Representatives, referred to as the "One Big Beautiful Bill Act" (OBBBA), included provisions that would eliminate or drastically curtail the ITC. Specifically, concerns were raised about:

- Significant reductions or outright elimination of the residential solar and storage tax credit, potentially impacting third-party financed systems particularly hard.

- An accelerated phase-out of clean energy tax credits, creating uncertainty and potentially requiring projects to meet very tight deadlines for construction and commissioning to qualify.

While the bill's passage was in the House, its fate then moved to the U.S. Senate, making the current legislative landscape crucial. The core issue is that a successful, job-creating, and climate-friendly policy is at risk of being dismantled or severely weakened.

Why We're Concerned: The Far-Reaching Negative Impacts

The potential loss or reduction of the ITC is deeply concerning for several reasons:

Slower Clean Energy Adoption: The ITC has been a primary driver in making solar and other renewable energies cost-competitive. Weakening it will inevitably slow down the transition to a cleaner energy grid, making it harder to meet climate goals and reduce greenhouse gas emissions.

Job Losses: The renewable energy sector, particularly solar, has created hundreds of thousands of American jobs in manufacturing, installation, sales, and maintenance. Slashing the ITC would lead to significant job losses across the country.

Increased Energy Costs for Consumers: By making solar less affordable, more households and businesses will be reliant on potentially more volatile and polluting traditional energy sources. This could lead to higher energy bills in the long run.

Reduced Energy Independence and Security: Investing in domestic renewable energy sources enhances U.S. energy independence and reduces reliance on global fossil fuel markets, which can be subject to geopolitical instability. Weakening the ITC undermines this progress.

Economic Uncertainty and Stifled Innovation: The clean energy industry relies on stable, long-term policy signals to make investments in manufacturing, research, and development. Abruptly changing or eliminating the ITC creates economic uncertainty, discourages investment, and can stifle innovation in this critical sector.

Undermining Climate Commitments: At a time when urgent action on climate change is paramount, reducing incentives for clean energy sends the wrong signal and makes it significantly more challenging to achieve national and international emissions reduction targets.

What We Want to Happen Now: A Call for Senate Action to Protect and Strengthen the ITC

The solution is clear: The U.S. Senate must reject any provisions in the OBBBA or any other legislation that would eliminate, reduce, or accelerate the phase-out of the Investment Tax Credit for clean energy.

Specifically, we call on U.S. Senators to:

Vote NO on any bill or amendment that weakens the current ITC. This includes maintaining the existing credit levels and ensuring a stable, predictable phase-down schedule rather than an abrupt termination.

Publicly Champion the ITC: Senators should vocally support the ITC, highlighting its proven benefits for job creation, economic growth, consumer savings, and environmental protection.

Consider Strengthening and Expanding the ITC: Instead of cutting it, Congress should explore ways to enhance the ITC to further accelerate clean energy deployment. This could include:

- Extending the full credit for a longer period.
- Making the credit more accessible, perhaps through direct pay options for entities without sufficient tax liability.
- Expanding eligibility to cover new and emerging clean energy technologies.

Prioritize Long-Term Policy Stability: Provide the clean energy industry with the long-term certainty it needs to continue investing, innovating, and creating jobs in America.

Protecting and strengthening the ITC is not just an energy issue; it's an economic, environmental, and national security imperative. We urge citizens to contact their Senators and demand action to safeguard this vital policy and ensure a continued bright future for clean energy in America.