My Tesla solar/energy install is likely not happening until January, thereby just missing the 2023 tax year. I hadn't really thought about this until recently, but now my concern is I will outlay $50k in January 2024 and then the IRA tax credits will be repealed some time in 2024 and I will lose out on approx $15k in tax credits.
I know R's tried to repeal the IRA tax credits in the debt limit bill earlier this year, but it was removed in compromise with Biden. It seems the repeal of the IRA tax credits may not even be so popular within the Republican party either, other than hardliners of course. The debt limit has now also been suspended until 1/1/25 after the election. However, according to my research Congress has broad authority to change the tax code mid-year and even early in the next year for the preceding year (e.g. Jan 2025 for tax year 2024). So should they want to repeal the IRA tax credits effective 1/1/24 they certainly could.
My thoughts are the IRA tax credits are unlikely to change during an election year (2024), but could change in 2025 sometime should the R's take control of Congress and the White House, which then wouldn't matter for my scenario. I do also think it is unlikely one party controls the House, Senate, and White House anyways after the elections this fall, thus making it unlikely one party could jam through their agenda one way or the other.
Is my concern unwarranted? I realize anything can happen in politics, but just curious what everyone's thoughts are on this from both sides of the aisle.
I know R's tried to repeal the IRA tax credits in the debt limit bill earlier this year, but it was removed in compromise with Biden. It seems the repeal of the IRA tax credits may not even be so popular within the Republican party either, other than hardliners of course. The debt limit has now also been suspended until 1/1/25 after the election. However, according to my research Congress has broad authority to change the tax code mid-year and even early in the next year for the preceding year (e.g. Jan 2025 for tax year 2024). So should they want to repeal the IRA tax credits effective 1/1/24 they certainly could.
My thoughts are the IRA tax credits are unlikely to change during an election year (2024), but could change in 2025 sometime should the R's take control of Congress and the White House, which then wouldn't matter for my scenario. I do also think it is unlikely one party controls the House, Senate, and White House anyways after the elections this fall, thus making it unlikely one party could jam through their agenda one way or the other.
Is my concern unwarranted? I realize anything can happen in politics, but just curious what everyone's thoughts are on this from both sides of the aisle.