On the final day of its 2025 session, the California state legislature passed Senate Bill 302 to exempt solar developers from paying taxes on IRA benefits. The vast majority of states do not tax such benefits. The legislature also advanced a bill to create a Western regional electricity market.
“We applaud California legislators for passing Assembly Bill 825 and Senate Bill 302, two commonsense ways to help address energy affordability in the state. We urge Governor Newsom to sign these bills, which come amid relentless attacks and red tape from Washington that are hindering solar development and raising Californians’ electric bills,” said Stephanie Doyle, California state director for SEIA. “SB 302 will keep energy project costs down by allowing California energy developers to realize the full value of federal tax incentives.
SB 302 was introduced by Sen. Steve Padilla and would make the IRA tax exemption retroactive to the 2023 and 2024 tax years, according to E&E News.
“State leadership on clean energy policy is more important now than ever. The solar and storage industry will continue to work with state leaders to make sure that all Californians can access the clean, affordable energy they’re demanding,” Doyle continued.
