Is the 30% Federal Solar Tax Credit Ending After 2025? Here’s What Homeowners in Missouri and Illinois Need to Know
If you're exploring solar panel installation for your home in the St. Louis region or Southern Illinois, there's one major incentive you need to know about: the 30% Federal Solar Tax Credit. Officially called the Investment Tax Credit (ITC), it allows you to deduct 30% of your solar project costs from your federal tax bill.
However, on July 4th, President Trump signed the "One Big Beautiful Bill" into law, accelerating the end of the 30% federal solar tax credit for homeowners. To take advantage of the full credit before it’s reduced, solar systems must be installed by December 31, 2025.
What Is the Federal Solar Tax Credit?
The Federal Solar Tax Credit is a nationwide incentive designed to make solar more affordable. You can claim 30% of your total installation cost as a tax credit, helping offset the upfront investment in clean energy. That includes:
- Solar panels and hardware
- Solar batteries and energy storage
- Electrical panel upgrades required for solar
- Labor, permitting, and inspection fees
For example, if your solar system costs $30,000—a common national average in 2025—you may receive a $9,000 tax credit.
📝 Note: Solar installation costs vary by system size, battery configuration, location, and roof complexity. This estimate is for educational purposes only and does not reflect a specific quote.
Is the 30% Solar Tax Credit Ending?
The residential solar tax credit is now officially ending after December 31, 2025—without a phase-down.While the Inflation Reduction Act originally extended the ITC through 2032, the recently signed “One Big Beautiful Bill” overrides that timeline, accelerating the credit’s expiration for homeowners.
Why Local Homeowners Are Rushing to Act
Solar panel installers in Missouri and Illinois are already seeing increased demand in response to the proposed sunset. When the tax credit disappears after 2025, homeowners who delay may face:
- Longer installation timelines due to installer backlogs
- Higher prices driven by supply and labor demand
- Missed deadlines if systems aren’t operational by year-end
- Lost savings that could have made solar more affordable
Remember: Your solar system must be fully installed and operational by December 31, 2025 to claim the credit.
What Does This Mean for Homeowners in Missouri and Illinois?
Homeowners in Missouri and Southern Illinois have a lot to gain by going solar before 2025 ends:
- Lock in maximum tax savings while they're still guaranteed
- Get ahead of rising utility rates
- Boost your home’s value with clean energy
- Add energy independence with battery storage solutions
And those utility rates? They’re already rising fast.
In 2025, regulators in both Missouri and Illinois approved significant rate hikes for Ameren customers:
- Missouri residents are seeing an average increase of $14 per month
- Illinois customers face a jump of 18% to 22%, which translates to about $45 more per month
These increases are being driven by infrastructure investments, high demand, and grid modernization plans across both states.
Waiting not only risks missing out on the 30% tax credit—it could also mean locking in higher energy bills for years to come.
Why Would the Credit Be Cut Early?
Here’s what drove the conversation in Congress:
- Pressure to reduce federal spending
- Shifting political priorities after the 2024 election
- Perception that solar is now affordable without subsidies
But for most homeowners, especially in Missouri and Illinois, solar is still a major investment. Without the 30% credit, many families may be priced out of long-term energy savings.
Want Help Choosing the Right System?
Not sure where to start with solar? We’ve got you covered.
Check out our Solar Panel Buyer’s Guide — a no-fluff resource that walks you through:
- How to compare solar panels
- What to look for in an installer
- Tips on evaluating battery storage
- Questions to ask before signing a contract
Whether you're just beginning your research or ready to take the next step, this guide will help you make an informed, confident decision.
Work with Trusted Solar Panel Installers in Missouri and Illinois
At Brda Electric, we specialize in residential solar installations throughout St. Louis and Southern Illinois. From permits to panels to battery backup, our licensed team handles it all.
Still weighing your options?Download our Solar Panel Buyer’s Guide to compare systems and get clarity before committing.
Want peace of mind after installation?Ask about our Home Guard Plan, which includes an annual electrical inspection and optional warranty add-ons.
Ready to take the next step?Contact us and we’ll help you decide if solar is the right fit for your home.