ASE Urges Senate to Preserve Energy Efficiency Tax Credits as Critical Infrastructure Strategy

ASE Urges Senate to Preserve Energy Efficiency Tax Credits as Critical Infrastructure Strategy

The Alliance to Save Energy News

ASE Urges Senate to Preserve Energy Efficiency Tax Credits as Critical Infrastructure Strategy

Release Date: Thursday, May 22, 2025

For Immediate Release
Contact: Jessica Nesterak, jnesterak@ase.org, (202) 557-6549

Washington, DC – The Alliance to Save Energy (ASE) urges the Senate to preserve key energy efficiency incentives that promote economic growth, reduce costs for American families, and support U.S. energy dominance when it considers budget reconciliation legislation, which passed the House this week.

Two critical energy efficiency credits are at stake:

The Energy Efficient Home Improvement Credit (25C):
This would increase the cost of energy-saving upgrades for homeowners, disproportionately impacting the ability of low- and moderate-income households to take advantage of energy-bill savings over time.

The New Energy Efficient Home Credit (45L):
This would discourage the construction of energy-efficient new homes. Efficient new construction is crucial for long-term energy savings, a more resilient housing stock, and U.S. competitiveness in advanced building technologies.

“Proposals to repeal 25C and 45L to save $27.2 billion over 10 years may look fiscally prudent on paper, but the downstream effects are far more costly,” said Paula Glover, ASE president. “Without these credits, Americans will face higher energy bills during a period of rising demand—when every kilowatt-hour counts.”

Moreover, Glover underscored energy efficiency’s role in maintaining and expanding U.S. competitiveness and fueling America’s edge in AI innovation and the next wave of industrial growth.

“As President Trump emphasizes energy and crypto reserves as national assets, we must not forget that energy efficiency is the quiet reserve—cheaper than generation, faster than transmission, and critical to our long-term advantage,” Glover said. “As a fuel-neutral association, ASE supports all forms of energy that move the country forward, and we urge the Senate to consider the impact the elimination of these important policies will have on the economy.”

About the Alliance to Save Energy

Through research, education, and outreach, the Alliance to Save Energy is the leading advocate for federal energy efficiency policy. ASE champions the power of putting energy efficiency first for a broad coalition of members including utility providers, manufacturers, and retailers.

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