Update as of July 9, 2025:
President Trump signed the One Big Beautiful Bill into law on July 4. Among its many impacts, the bill accelerates the phase-out of the residential solar tax credit (25D), ending on December 31, 2025.
Here’s the good news: third-party-owned residential systems like solar leases or PPAs, will remain eligible for the full 30% ITC through 2027. That’s an important lifeline for homeowners who prefer not to purchase outright.
For typical homeowners who plan to own their systems, the clock is ticking. To qualify, your system must be fully installed and “placed in service” by December 31, 2025. Waiting past that date means you could miss out on those valuable tax savings!
🟠Stay tuned! We’ll keep updating you with the latest as negotiations unfold.
Update as of July 1, 2025:
After a marathon voting session, the Senate has officially passed the Big Beautiful Bill. While some amendments were debated, the final version does include the full repeal of the 25D Residential Solar Tax Credit after December 31, 2025, with no guaranteed extension for residential systems.
Although earlier drafts hinted at a possible “start-of-construction” clause, that provision appears to only apply to commercial and utility-scale projects. For homeowners, the clock is now ticking, solar systems must be fully installed and placed in service by the end of 2025. The bill now heads to the House, where passage is expected ahead of the July 4th recess.
Update as of June 27, 2025:
There’s been a last-minute push in the Senate to soften the blow of the proposed changes to the 25D solar tax credit. Lawmakers are now working on revised language that could extend part of the credit beyond 2025, but it’s far from guaranteed.
The current House version would end the full 30% credit at the end of this year, with no extensions. The Senate’s draft is still being negotiated, and while it may offer a slight extension or “start-of-construction” clause for some commercial installs, most residential systems would still need to be installed and placed in service before the end of 2025 to qualify.
Introduction
Independence Day is about to take on a whole new meaning for Arkansas homeowners.
Congress is expected to vote on legislation that would end the 25D Residential Solar Investment Tax Credit as early as July 4, 2025. This tax credit currently allows homeowners to deduct 30% of the costof installing solar panels, battery storage, and related equipment from their federal taxes.
If passed, this bill would begin phasing out the credit for systems not placed in service by December 31, 2025.
Time is running out to protect your solar savings! That’s why AEV Solar is here to break down the 25D tax credit, and explain why the July 4th vote is so critical.
What is the 25D Solar Tax Credit?
The 25D credit is a powerful federal incentive that helps homeowners:
- Save 30% on their total solar installation cost
- Offset taxes owed to the IRS
- Make clean energy more affordable and accessible
It applies to:
- Solar panels
- Inverters and batteries
- Installation labor
- Permits and related costs
But time is running out. Lawmakers have proposed eliminating the credit as part of a broader budget package, and a vote is expected around July 4th.
Why This July Vote Changes the Timeline
Although the official expiration date is December 31, 2025, it’s not advised to wait that long.
To claim the credit, your solar system must be:
- Fully installed
- Inspected and interconnected
- Placed in service by the end of the year
The whole process can take anywhere from 45-60 days, so your true deadline to sign a contract is October 31, 2025.
But here’s the twist, if the bill passes in July, a “start-of-construction” clause may apply, which only allows credit eligibility if your system begins construction without 60 days of the vote and is completed by 2028. The clause is complex and may not apply to standard residential purchases.
Bottom line? Don’t risk it. The safest way to ensure you qualify for the 25D tax credit is to act before the bill passes.
What’s at Stake for Arkansas Homeowners
If you wait too long, you could lost:
- 30% in federal tax savings
- Access to certain state-level incentives
- Your best chance to gain energy independence affordably
This is why AEV Solar is committed to keeping our community informed and helping you act fast before the rules change.
How AEV Solar Helps You Beat the Deadline
As one of Arkansas’ leading solar providers, we’re already ramping up to handle the July deadline rush. Here’s how we’re helping you secure your 25D savings:
- Priority scheduling for contracts signed before July 4
- Transparent install timelines to meet “placed in service” criteria
- Real-time updates on policy changes
- Guidance on all federal and local incentives
- Blog and email updates published monthly to keep you ahead
Want to Help? Contact Congress
This is your chance to take action, not just on your home, but for your community.
Send an email to your local senators, encouraging them to protect the 25D credit and keep clean energy affordable! You can do this by visiting your local senates’ website and accessing your local senators’ contact information.
Conclusion: Beat the Vote, Save Your Credit
Waiting until the fall may be too late.
If Congress moves forward on July 4, the path to securing your 30% savings becomes riskier and more complicated.
Here’s the smartest move: Start by running your numbers with our free solar calculator. From there, schedule a consultation with our team so we can walk you through your options as soon as possible. The sooner your contract is signed, the better your position before the vote.
The July 4th deadline is approaching fast.
Beat the bill. Secure your credit. Experience smarter energy with AEV Solar.
GET AN ESTIMATE TODAY
