Senate bill eliminates key home energy tax credits — a “profound mistake”
There’s still time to protect these smart investments
The following is a statement from Rewiring America founder and CEO Ari Matusiak on the U.S. Senate Committee on Finance’s markup of the House budget bill:
“Eliminating the tax credits that save families money is a profound mistake. They’re not niche incentives — they’re key tools for lowering energy bills, creating good jobs that can't be offshored or fulfilled by AI, and reducing pressure on an increasingly strained power grid.
“In 2023, more than 3.4 million Americans used the Energy Efficient Home Improvement Credit (25C) and the Residential Clean Energy Credit (25D) to make home energy upgrades. Removing them now takes agency away from American households to get out from under the ever-increasing burden of rising energy costs. It harms small businesses making home upgrades and undercuts the fastest and most affordable solution to meet skyrocketing electricity demand: residential electrification.
“And eliminating the New Energy Efficient Home Credit (45L) would slow construction of energy-efficient homes just as housing costs and electricity demand are both surging. These credits help builders construct homes that are less costly to power and more resilient to weather extremes, saving homeowners money from day one and making housing more affordable in the long term.
“Congress needs to do more for families; not kill what’s delivering real results.”
Read related Rewiring America analyses on 25C and 25D’s impact on jobs, household savings, and peak demand:
Grid pressure, AI demand, and the overlooked household solution under attack in Congress
New analysis from Rewiring America shows that technologies supported by the Energy Efficient Home Improvement Credit (25C) and the Residential Clean Energy Credit (25D)—like heat pumps, insulation, and rooftop solar—could slash residential electricity demand by nearly half in some states.
This tax credit is an essential tool to help meet growing energy demand
A new Rewiring America analysis shows how the Energy Efficient Home Improvement Tax Credit (25C) can reduce peak demand and free up additional capacity equivalent to hundreds of energy-intensive data centers.
The small but mighty federal tax credit that supports 240,000 jobs nationwide
A new Rewiring America analysis shows how the 25C Energy Efficient Home Improvement Tax Credit drives consumer spending critical to supporting domestic jobs.
A new Rewiring America analysis shows how the Energy Efficient Home Improvement Tax Credit (25C) and the Residential Clean Energy Tax Credit (25D) can wipe out past and future energy price inflation.
For homeowners, the 25C tax credit is a powerful way to boost comfort and cut energy costs. For contractors, it drives growth, jobs, and year-round demand.