President Trump’s tax bill is about to end a number of tax credits for homeowners who install clean energy appliances. But some people are racing to beat the deadline.
Megan Hall: Welcome to Possibly, where we take on huge problems like the future of our planet and break them down into small questions with unexpected answers. I’m Megan Hall.
Back in July, President Trump signed a major bill into law, a bill you’ve probably heard people call The Big Beautiful Bill. This month on Possibly we’ve been breaking down what the law means for the fight against climate change in the US.
Nat Hardy from the Possibly team has been looking into it.
Nat Hardy: Hi Megan! Nice to be back
Megan Hall: So in the past couple episodes you’ve explained what the law means for things like wind turbines, solar panels, and electric cars. Could you give us a quick recap?
Nat Hardy: Sure thing. So the law cuts a lot of federal funding for new wind farms and solar panels. It’s also ending a big tax credit to help people buy electric cars.
Megan Hall: Okay, not great news for reducing our emissions.
Nat Hardy: Yeah, a pretty big step back in the fight against climate change.
Megan Hall: So what are we talking about today?
Nat Hardy: Today I wanted to take a look at what the Big Beautiful Bill means for homeowners who are trying to fight climate change, so I sat down with a homeowner.
Larry Chretien: I’m Larry Chretien and I’m the executive director of the Green Energy Consumers Alliance.
Nat Hardy: Beyond just being a homeowner, Larry’s organization, the Green Energy Consumers Alliance is a nonprofit devoted to helping people transition away from fossil fuels. Larry says that since 2022, homeowners have had help installing green technology in their homes, thanks to the Inflation Reduction Act.
Larry Chretien: So there’s a variety of tax credits there. 30% for solar. That’s a big market in the United States for rooftop solar. But there were also a range of tax credits for smaller appliances, such as heat pumps for example, all geared towards electrification.
Nat Hardy: But, like most parts of the Inflation Reduction Act, these tax credits have been repealed under the Big Beautiful Bill.
Megan Hall: So what does that repeal mean for homeowners?
Nat Hardy: Long term, it’s going to make it significantly more expensive to install things like solar panels, batteries, or heat pumps, at your house. But the credit is still available for products that are paid for, and installed before the end of this year, 2025.
Larry Chretien: You know, for example, I am probably going to buy heat pumps before December 31st. ‘Cause that’s the rule there. You get a $2,000 tax credit on heat pumps. I’m gonna race to beat the deadline
Nat Hardy: But, even with that money, heat pumps are still pretty expensive. If you’re getting a central air source heat pump – the kind of thing you could install instead of central AC – that’s going to cost anywhere from 10 to 20 thousand dollars. But Larry can get some other financial help as well…
Larry Chretien: I will couple that with a Massachusetts rebate. I’m a Massachusetts resident. So the $2,000 – I don’t wanna leave it on the table.
Nat Hardy: Massachusetts offers up to $10,000 to help homeowners switch to a heat pump, which can definitely help with the cost.
Megan Hall: But what does this mean for homeowners without that federal tax credit?
Nat Hardy: Well, although the federal credit helped people electrify their homes, these tax credits were never going to cover the cost to electrify all of the homes in the US, which we’ll need to do to get our emissions to zero. But the idea was to give this industry a push in the right direction.
Megan Hall: And now the Trump administration is giving them a push in the other direction.
Nat Hardy: Yeah exactly. And so advocates like Larry want states to step up.
Larry Chretien: I think what’s important is that states continue to do what they can to, to offer support for clean energy, to help ride through it. Because, you know, once you let your industry fall apart, it’s really hard to pull it back.
Nat Hardy: Our home state of Rhode Island and our neighbor Massachusetts both passed laws requiring the state’s emissions to be at net-zero by 2050.
Larry Chretien: But, those laws were passed, and this is very important, before the Inflation Reduction Act. Now that the Big, Beautiful Bill is in place, it kind of rolls back to where we were, in some ways. They were enjoying essentially a tailwind when the Inflation Reduction Act came in. Now we’ve got a bit of a headwind with, the Big Beautiful Bill.
Nat Hardy: And so Larry’s pushing state governments to offer more incentives to help homeowners transition away from fossil fuels.
Megan Hall: Okay. But, can states afford to throw around all of this money?
Nat Hardy: Yeah you’re right – No one expects the government to buy every house a heat pump. Instead, the thought is to keep the industry’s momentum going, so heat pumps and other electric appliances get more affordable and practical. That way, the next time homeowners are replacing something, there’s an environmentally friendly option available, at an affordable price.
Megan Hall: Got it, thanks Nat.
That’s it for today. You can find more information, or ask a question about the way your choices affect our planet, at askpossibly.org. You can also subscribe to Possibly wherever you get your podcasts or follow us on Instagram, Facebook, LinkedIn, or Bluesky at “askpossibly”
Possibly is a co-production of Brown University’s Institute for Environment and Society, Brown’s Climate Solutions Initiative, and the Public’s Radio.
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