With the recent results of the U.S. presidential election and the election of Donald Trump, news articles by CNBC and Forbes have indicated preliminary discussions of the Inflation Reduction Act (IRA) being repealed.
While the future of the IRA is still up in the air at this moment in time, Trump’s presidency is almost certain to usher in new restrictions, expiration dates and caps that narrow its scope at a minimum. James Lucier, managing director at research group Capital Alpha Partners notes, “There is always a strong likelihood that some parts of the IRA are going to be capped or phased out.”
The IRA currently provides a crucial 30% tax credit for U.S. homeowners who choose to install solar panels. As one of the most significant incentives for renewable energy adoption, the potential removal of this credit could have substantial implications for the solar industry and homeowners considering going solar.
Under this act, the Investment Tax Credit (ITC) offers 30% financial relief to homeowners wanting to take advantage of solar energy and helps make the switch to clean energy more accessible across the country. It has fueled the rapid growth of solar installations and supported not only job creation but environmental progress as well.
Rolling back the IRA could potentially remove the 30% ITC tax credit, adding financial burden to those wanting to make the switch to solar. Homeowners will have a higher upfront cost for installation, making the switch less accessible and overall leading to a dip in demand.
For homeowners considering switching to solar energy, now is the time to act. You can still lock in the 30% ITC tax credit before any potential policy changes. Call (800) 552-9970 or click here to schedule a call with our Energy Consultants.
