If you’ve been thinking about going solar, there’s never been a more urgent time to act. New legislation introduced earlier this month (in May 2025) — the “One Big Beautiful Bill” Act — could fundamentally change the future of clean energy in the U.S. Among its many sweeping proposals? A full repeal of the federal solar tax credit as soon as the end of this year.
Whether you’re in the early research phase or already considering a solar installation, here’s what you need to know about the bill, what it means for your potential savings, and why 2025 may be your last real shot to claim the full 30% federal incentive.
The “One Big Beautiful Bill”Act: An Overview
Passed in the House of Representatives on May 22, 2025, the “One Big Beautiful Bill” Act intends to restructure the federal tax code with a heavy focus on eliminating clean energy incentives. Officially, Section 112006 of the bill is titled the Termination of Residential Clean Energy Credit — and that’s exactly what it does. If passed, this provision would repeal the Investment Tax Credit (ITC) for residential solar systems, which currently allows homeowners to claim 30% of their total installation costs as a federal tax credit.
This proposal comes years ahead of the current expiration timeline. Under the Inflation Reduction Act, the ITC was extended through 2032, with a gradual phase-down starting in 2033. The new bill, however, would gut that extension and potentially end the credit by the end of 2025, if not sooner, depending on when the bill becomes law.
And it’s not just solar at risk — the legislation also targets tax credits for electric vehicles, hydrogen energy, and clean electricity production. It represents a dramatic shift away from federal support for renewable energy.
What This Means for Homeowners
The solar tax credit has been one of the biggest incentives driving residential adoption of solar power. By knocking off 30% of installation costs, it significantly reduces the financial burden of going solar. In real numbers, a typical 5 kW solar system in Kansas City costs around $15,000. With the 30% credit, that cost drops to just over $10,000 — saving you more than $4,500.
But here’s the catch: the credit is only available if your system is installed and operational by the end of 2025. That means panels on the roof, fully inspected, and connected to the grid. Given the time required for planning, permitting, utility coordination, and installation, waiting until late 2025 could mean missing the deadline entirely.
If the bill passes, there’s no guarantee of a grace period or phased transition. The repeal could take effect immediately upon signing — or it could remove the credit retroactively to the beginning of the year. In other words, the clock is ticking, and the sooner you act, the better your odds of locking in your full savings.
Why the 30% Tax Credit Matters
It’s easy to look at solar as a long-term investment — and it is. But that 30% tax credit creates a near-immediate return that shortens your break-even timeline and increases your long-term savings. In Kansas City, most homeowners recoup their solar investment in 8 to 12 years. After that, they enjoy 10 to 20 years of essentially free electricity, protected from rising utility rates and billing surprises.
Without the federal credit, those same homeowners would be looking at a much longer payback period — and a higher upfront cost. For many, the difference could be enough to delay or cancel plans entirely.
That’s why the “One Big Beautiful Bill” Act poses such a significant threat — not just to clean energy policy, but to families who were counting on the federal credit to make solar more affordable.
Don’t Wait Until It’s Too Late
If there’s one consistent message from the solar industry right now, it’s this: Don’t wait. With supply chain constraints and permit timelines to consider, the window to install before the potential deadline is shrinking fast.
Waiting just a few more months to start your project could push your timeline into 2026 — making you ineligible for the full credit if the bill becomes law. And since federal legislation can move quickly once there’s political momentum, there’s no guarantee you’ll get advance warning.
Instead of gambling with your potential savings, the best move is to start the process now. KC Solar handles every step of the process — from your free quote and custom system design to permitting, installation, and final inspection. We’ll make sure you meet the federal requirements so you can claim every dollar you’re entitled to.
Get Started Now For Your Chance To Save Thousands on Solar
There’s still a small chance the “One Big Beautiful Bill Act” doesn’t pass. It may face pushback from clean energy advocates, the solar industry, and lawmakers in swing states. But relying on political outcomes isn’t a solid financial strategy.
Even if something changes with the bill, moving forward with solar in 2025 still makes sense. You’ll lock in the 30% credit, reduce your energy bills, and start building energy independence for your home — while helping Kansas City move toward a cleaner, more sustainable future.
KC Solar is a local company made up of KC natives with KC pride — in our city, and in our work. Which means we’ll always give you the best of ourselves.
Want to protect your 30% federal solar tax credit? Start your project today before schedules fill up and deadlines arrive. Get in touch with us today.
And be sure to download our Free Solar Panel Buying Guide for more information.
