With the recent inauguration of President Trump, many homeowners and businesses are left wondering: Will the federal solar Investment Tax Credit (ITC) survive? Each time the US undergoes a political shift uncertainty follows but there are several factors that suggest the ITC will remain in fact. Let’s check them out.
What does history tell us about the Solar Tax Credit?
During his first term, Trump left the federal solar tax credit in place. Homeowners and businesses continued to invest in solar energy and receive tax credits when they qualified. While we know this administration has stated they plan to do things differently history suggest that while changes may happy to the ITC an outright cancellation is not guaranteed.
Bipartisan Support for Clean Energy Incentives
The ITC has long enjoyed strong bipartisan backing. Unlike many topics, Americans seem to be on the same page when it comes to federal clean energy tax credits, a 2024 poll found that nearly 90% of American voters support federal clean energy tax credits, including 78% of 2020 Trump voters. With approval from both sides of the aisle, there is political incentive to maintain the credit.
How Solar Tax Credits Drive Economic Growth
By now, we all know that the price of eggs—and just about everything else—is rising. That’s why anything that boosts economic growth is a win. The solar ITC has spurred over $60 billion in energy investments, fueling job growth and economic development, particularly in Republican-led states like Texas and Florida. These states have seen significant expansion in solar infrastructure, creating thousands of jobs and boosting local economies. Eliminating the credit could put these investments, and the jobs they create, at risk.
What Should Homeowners and Businesses Do?
While the future of the solar tax credit under the Trump administration remains uncertain, history, bipartisan support, economic impact, and industry influence suggest that it may continue in some form. However, policy shifts could happen, and those considering solar may benefit from acting sooner rather than later to secure the current incentives.
If you’re thinking about going solar, now is the time to explore your options. Contact Sun Up Zero Down to see how the solar tax credit can work for you before any potential changes take effect.