Republicans Are Trying to Kill Clean Energy Tax Credits—Here’s Why That Matters for Wisconsin Families
In their recently passed “One Big Beautiful Bill,” House Republicans proposed eliminating two critical clean energy tax credits: Section 25C, the Energy-Efficient Home Improvement Credit, and Section 25D, the Residential Clean Energy Credit. Together, these credits have lowered millions of American households’ energy bills, reduced our carbon emissions, and created good-paying jobs—right here in Wisconsin and across the country. Stripping them away isn’t just a climate mistake—it’s an economic and equity disaster.
What Are These Tax Credits?
The 25C tax credit helps homeowners afford energy-efficient home improvements. This includes better insulation, energy-saving doors and windows, and upgrades to heating and cooling systems like heat pumps. These upgrades not only reduce a household’s energy use and carbon footprint but also lower monthly utility bills.
The 25D credit is even more impactful. It offers a 30% tax credit for installing residential renewable energy systems—most commonly solar panels. This credit has driven a surge in rooftop solar across the country, making clean energy more affordable for middle-class families who otherwise wouldn’t be able to make the upfront investment.
Both credits were expanded and extended under the Inflation Reduction Act and are currently set to run through 2032. But if Republicans have their way, they’ll be eliminated by the end of 2025—cutting off families from tools that help them save money, reduce emissions, and gain energy independence.
Who Benefits From These Credits?
The people who benefit most from these credits aren’t wealthy homeowners or big corporations—they’re working families trying to cut costs. According to the electrification nonprofit Rewiring America, a typical family that installs rooftop solar and upgrades to electric heating and cooling systems can save up to $2,240 annually on their utility bills. These savings add up, especially for families living paycheck to paycheck.
Across the country, over 100,000 jobs in residential solar installation, contracting, and manufacturing are directly supported by the 25D credit. These are often small businesses, including many in Wisconsin, that rely on predictable demand from customers who know they can afford a solar system thanks to the credit.
Here in Wisconsin, thousands of families have already taken advantage of these credits. In 2023 alone, more than 1,600 homes in Wisconsin installed rooftop solar. That number has grown significantly over the past decade, thanks in part to the 25D credit. Wisconsin’s clean energy sector now supports over 76,000 jobs across solar, energy efficiency, and electrification—jobs that are at risk if these credits disappear.
📊 Benefits of homeowner tax credits
Scope |
Impact |
National solar jobs |
Over 100,000 residential solar industry jobs fueled by 25D |
Homeowner savings |
~$2,240/year (≈ 70% off energy bills) for qualified households |
Families served |
Tenfold increase in installations under 25D suggests hundreds of thousands of families nationwide |
Wisconsin families & jobs |
Proportionate share based on national data — likely thousands of households and hundreds of state jobs tied directly to residential solar and retrofits. |
What Happens If Congress Repeals Them?
If Congress repeals these credits as proposed in the GOP bill, the economic shockwaves will be felt across the country. Clean energy contractors could see demand plummet, especially among lower- and middle-income families who depend on tax credits to make upgrades affordable. A report from the Solar Energy Industries Association warns that repealing the 25D credit could slash rooftop solar installations by more than 40% over the next three years.
In Wisconsin, that means fewer solar panels on homes, fewer local jobs in installation and contracting, and slower progress toward our climate goals. It would also push energy costs higher, just when Wisconsinites need relief the most. For many, the choice won’t be whether to go solar—it will be whether they can afford to heat their homes at all.
Eliminating the 25C and 25D credits also threatens our progress on climate justice. These programs are among the few federal policies that empower everyday people—not just utilities or corporations—to take action on climate change. They help renters and homeowners alike invest in cleaner, more resilient homes and communities.
Why This Matters Now
The stakes couldn’t be higher. The fight isn’t over—this bill still has to pass the Senate, where there is stronger support for clean energy programs. But the fact that these credits are even on the chopping block should alarm all of us who care about climate, jobs, and equity.
The Inflation Reduction Act was the most ambitious climate legislation in U.S. history. But it’s under constant threat. We cannot afford to roll back progress just as communities are finally seeing the benefits of federal climate action.
What You Can Do
Right now, we need your voice. Tell Senators Tammy Baldwin and Ron Johnson to reject the repeal of Sections 25C and 25D. Let them know that Wisconsinites support affordable clean energy, and that we won’t accept giveaways to polluters at the expense of our families, climate, and economy.
You can call your senators or write them a quick email at https://www.senate.gov/senators/senators-contact.htm. And don’t forget to share your story. If you or someone you know has benefited from these tax credits, your voice can make the difference.
Let’s make sure Wisconsin continues to lead on clean energy—not get left behind.