Sunrun (RUN) shares closed down 37% on Thursday on Thursday after President Donald Trump’s new tax bill narrowly passed the House of Representatives. 

Investors are bailing on RUN shares this morning because the said bill drastically trims tax benefits that former President Joe Biden’s Inflation Reduction Act had introduced for clean energy companies in 2022. 

Additionally, it could make it incrementally more challenging for many projects to qualify for tax credits. Including today’s plunge, Sunrun stock is down nearly 50% versus its year-to-date high. 

What Trump’s Tax Bill Means for Sunrun Stock

Trump’s new bill repeals the 30% federal tax credit for solar installers that lease equipment to their customers – something that more than two-third of the industry relies on. 

Sunrun shares are in shambles today because the company’s business model is far less attractive without those incentives. 

The bill could weigh on the overall demand for residential solar installations and phase out clean energy subsidies at a much faster pace than expected. Put together, these risks could prove disastrous for RUN stock in the back half of 2025. 

BMO Cuts Price Target on RUN Shares to $4

Trump’s tax bill made several Wall Street firms lower their expectations for Sunrun stock today. 

BMO analysts, for example, downgraded the solar company this morning to “Underperform,” adding the clean energy stock could sink further to $4 in the weeks ahead. 

The bill changes several rules that could make it significantly more difficult for RUN to manage its debt burden, they told clients in a research note on Thursday. 

BMO analysts turned bearish on Sunrun shares because, under the new administration, the San Francisco-headquartered firm may not be able to record as solid financials as it recently did for its Q1. 

Other Wall Street Firms Are Yet to Revise Sunrun Estimates

Other Wall Street analysts, however, are yet to revise their estimates for Sunrun stock to reflect what the new tax bill could mean for its business moving forward. 

The consensus rating on RUN shares still sits at “Moderate Buy” with the mean target of $13.42 indicating potential upside of about 100% from current levels.