Senate Fine-Tunes Rooftop Solar Credit as Tax Bill Nears Final Draft

As final negotiations continue over the sweeping Republican tax-and-spending package, one under-the-radar but impactful change has emerged in the Senate: a revised approach to the 30% federal rooftop solar tax credit. The adjustment signals a more favorable stance toward clean energy—at least for now.

While the House version had proposed a faster phase-out of solar credits for residential systems, Senate lawmakers are delaying the sunset schedule and rewording eligibility criteria to preserve broader access for middle-income households and energy-conscious homeowners.

What the Senate Version Proposes

The current solar credit, enacted under the Inflation Reduction Act, allows taxpayers to deduct 30% of the cost of installing rooftop solar, including labor, equipment, and certain battery storage systems. The House bill would have started phasing this out aggressively by 2026.

The Senate version modifies that in two ways:

• Extends the full 30% credit through 2028 (instead of 2026)

• Adds flexible eligibility criteria, including options for income-tiered qualifications and additional credit for battery systems over 10kWh

  
  

These changes have gained bipartisan support from senators representing sunbelt states like Arizona, Florida, and Texas where solar adoption is booming and local job creation depends on continued demand.

Why This Matters for CPAs and Advisors

While energy policy might seem peripheral, tax credits like this are highly relevant for:

• High-income clients investing in energy-efficient upgrades

• Real estate clients looking to raise property values via green improvements

• SMBs or pass-through entities that install solar as part of a commercial property strategy

  
  

Key implications:

• Timing strategies may shift as the sunset timeline is adjusted

• Bundled home upgrade credits may become more popular (solar + EV charger + heat pumps)

• Estimated tax planning must reflect the expected availability of these incentives into 2028

  
  

Broader Clean Energy Context

The rooftop solar credit tweak may signal a moderation in the Senate’s rollback of clean energy incentives. While some provisions like EV credits and hydrogen subsidies are still on the chopping block, solar, geothermal, and nuclear have retained strong political backing.

It’s also a signal that the tax bill isn’t purely about cuts it’s also about shaping long-term economic and infrastructure policy.

How Bizora AI Helps Clients Plan Around Green Incentives

Bizora AI automatically tracks legislation at the federal and state level and generates real-time insights on green credits, deduction eligibility, and ROI for clients.

Use Bizora AI to:

• Project solar credit benefits for individual or business clients

• Model multi-year energy tax incentives with updated Senate timelines

• Auto-generate personalized memos for clients who’ve installed or plan to install solar in 2024–2026

  
  

Want to estimate how this solar credit change affects your real estate or SMB clients?→ Ask Bizora AI and get instant answers with state-specific modeling.