Reps. Horsford & Gomez: Despite Republican Claims, Big Ugly Tax Law Does Not End Clean Energy Tax Credit

WASHINGTON, D.C. – U.S. Representatives Steven Horsford (NV-04) and Jimmy Gomez (CA-34) led Congressional Democrats on the House Ways and Means Committee in a letter to Internal Revenue Service (IRS) Acting Commissioner, Scott Bessent, demanding the agency publicly affirm that the Energy Efficient Home Improvement Credit (Sec. 25C) remains available despite a Republican effort to end the program as part of their Big Ugly Tax Law.

The Energy Efficient Home Improvement Credit provides significant relief for Americans by offering up to $3,200 annually for qualifying energy-efficient home improvements – helping households lower utility bills and reduce overall living costs. Families using the credit not only saved an average of $882 on their taxes, but also lowered their energy bills by an average of about $130 in the first year according to analysis by the American Council for an Energy-Efficient Economy.

The Energy Efficient Home Improvement Credit was created on a bipartisan basis in 2005, and expanded by Congressional Democrats as part of the Inflation Reduction Act of 2022.

The letter reads, in part:

If our colleagues on the other side of the aisle truly intended to eliminate [the Energy Efficient Home Improvement Credit], they should have cited the law correctly – Congress writes laws, and sloppy drafting is no excuse for the Treasury department to substitute its policy preferences for the language of the law as enacted.

Reps. Horsford and Gomez released the following statement: 

“The Energy Efficient Home Improvement Credit has helped Americans make ends meet and modernize their energy consumption for two decades,” Rep. Horsford said. “In Nevada, these tax credits make clean energy solutions affordable for more people, help lower energy bills, protect my constituents from extreme heat in the summer, and foster good paying jobs in our community.

“Despite Republican claims, these credits remain in effect for seven more years,” Horsford continued. “As such, the IRS must update its website to provide accurate information about the program. As President Trump raises costs on everyday goods, the American people deserve to know that programs still exist to help lower energy costs.”

“I wrote the Home Energy Savings Act, which was signed into law through the IRA, because working families deserve to get real savings on their energy bills,” Rep. Gomez said. “Despite Republican efforts to repeal this tax credit, 25C is still the law of the land through 2032, and families should keep getting the savings they were promised. I led the fight to create this credit, and I’ll keep leading the fight to protect it.”

Full text of the lawmakers’ letter is available here.

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