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Opinion: Why Consumer Reports is asking Congress to protect popular energy efficiency tax credits

Should these incentives remain in place, consumers will have until 2032 to take advantage of the program.

Should these incentives remain in place, consumers will have until 2032 to take advantage of the program.

Photo Credit: Depositphotos.com

Editor's note: This is an op-ed on the importance of protecting money-saving tax credit and rebate programs by Sara Enright, Senior Director of Safety and Sustainability for Consumer Reports, the nonprofit and nonpartisan product-testing organization founded in 1936.

Sara Enright
Sara Enright / Photo Credit: Consumer Reports

As Americans file their taxes today, millions are reaping the benefits of the Energy Efficient Home Improvement and Residential Clean Energy tax credits and rebates made available through the Inflation Reduction Act

These popular, effective programs are helping households across the country to cut utility costs, improve home comfort, and reduce greenhouse gas pollution. But now, they're under threat of repeal, putting hard-earned household savings, public safety, and climate progress at risk.

Thanks to these incentives, more than 3 million American families have already saved over $8.4 billion collectively. By installing better insulation, upgrading to high-efficiency heating and cooling systems, weatherizing homes, and adding clean energy sources like solar panels, these households have lowered their energy bills in a lasting way, increased their safety and comfort through extreme hot and cold weather, and reduced their reliance on polluting fuels like coal and natural gas

Should these incentives remain in place, consumers will have until 2032 to take advantage of the program, reducing their utility costs for years to come. Ending or limiting the program early would mean a bigger upfront investment for qualifying energy-efficiency projects.

It turns out these tax credits are not only effective — they're also wildly popular. In a recent nationally representative survey of 2,291 US adults, Consumer Reports (CR) found that 81% of Americans across the political spectrum (including 89% of Democrats and 75% of Republicans) support rebates or tax incentives to help homeowners make energy efficiency improvements. 

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In today's polarized political environment, this kind of broad bipartisan support is notable.

Consumers around the country are sharing their stories and urging lawmakers to protect these benefits, too.

"I used this credit to install solar panels in December 2024," said Paul from Albuquerque, New Mexico. "It's already a financial win for me, it employs local workers, reduces stress on the power grid in my neighborhood, and reduces carbon emissions. Don't let politics destroy common sense."

In an era of escalating disruption from increasing global temperatures — wildfires, floods, heat waves, and winter storms — energy-efficient homes are becoming a critical first line of defense. Better-insulated homes retain heat and cool air more effectively, reduce the burden on local utilities, and protect vulnerable residents when temperatures spike or plunge. 

A more efficient home is often also a healthier home. Upgrades like adding insulation, sealing leaks, and improving heating and cooling systems with better ventilation can reduce moisture that causes mold and improve indoor air quality by preventing contaminants like dust, pollen, and smoke from getting in — and quickly removing them when they do, such as with an air filter. 

Having more control over household energy bills is also a matter of equity. According to the American Council for an Energy-Efficient Economy, more than a quarter of Americans spend over 6% of their income on home energy costs. For low-income families and retirees on fixed incomes, tax credits offer a crucial opportunity to invest in upgrades that can reduce energy use by up to 30%, according to the Department of Energy

"It encourages people to make upgrades to their homes," said LuAnn from Winter Springs, Florida. "I feel this should not be cut. If there's fraud—yes, root it out. But let's not ruin it for all the people who are using it [the tax credit program] as intended."

These tax credits aren't just helping homeowners; they are also fueling domestic innovation and American manufacturing. As more consumers respond to these incentives and upgrade to efficient appliances, demand for high-performing products grows. That demand drives competition and encourages manufacturers to produce cleaner, more advanced technologies.

"I believe that improving efficiency is a large part of a greater energy solution," said Matthew from Effingham, Illinois. "Promoting these types of energy efficiency upgrades through the existing consumer tax credits can help Americans save energy and promote the purchase of American-made products."

CR has heard from thousands of consumers across the country — homeowners, renters, families, and retirees — who have shared how these credits have benefited them. In fact, over 18,500 members have joined our campaign to write directly to their congressional representatives, urging them to preserve these programs. Their messages are consistent and compelling: these programs work, and they should continue to be offered.

Despite this strong public backing, the tax credits are under attack. Some lawmakers are proposing to roll them back in the name of leveling the American balance sheet. But this framing misses the point. These are not giveaways: they are smart, long-term investments in American energy infrastructure and household resilience.

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The timing of this threat couldn't be worse. With the federal government raising tariffs on foreign-manufactured goods — including many of the products needed for energy-efficient upgrades — combined with inflation and rising energy prices, many households are already stretched thin. Repealing these tax credits now would deal a blow to families just when they need relief the most. 

"We were able to save over $11,000 on our taxes this year for installing solar panels and batteries," says Marilyn from Cerritos, California. "This was very valuable to us as seniors."

The voices of everyday Americans are clear. The savings, the health, and the environmental benefits all point in the same direction: these energy-efficiency tax credits should stay in place.

This Tax Day, CR urges lawmakers to stand with the majority of Americans who support smarter, more sustainable, safer homes. We're asking them to keep these credits in place, recognizing them as a rare win-win for consumers, manufacturers, and the environment.

This isn't just good policy; it's common sense.

What You Can Do

Want to join the campaign to protect energy efficiency tax credits? Visit Consumer Reports' campaign to urge your lawmakers in Congress to keep these tax credits alive.

About Consumer Reports

Founded in 1936, CR is on a mission to create a fair and just marketplace for all. Widely known for our rigorous research and testing of products and services, we also survey millions of consumers each year, report extensively on marketplace issues, and advocate for consumer rights and protections around safety, digital rights, financial fairness, and sustainability. CR is independent and nonprofit.

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