Big Tax Changes Ahead: Clean Vehicle Credit & SALT Deduction Updates
- Goodman Bookkeeping Team
- Sep 4
- 2 min read
The One Big Beautiful Bill Act (OBBBA) is bringing major tax changes that could affect your 2025 tax planning and long-term strategy. Three updates in particular stand out: the Clean Vehicle Credit ending, the discontinuation of Residential Energy Credits, and the increase in the SALT deduction limit.
Clean Vehicle Credit Ends September 30, 2025
If you have been considering a new or used electric vehicle, timing is critical. The Clean Vehicle Credit — up to $7,500 for qualifying new EVs and $4,000 for used EVs — will end for any vehicle acquired after September 30, 2025.
To qualify, you must:
Take delivery and
Place the vehicle in service no later than September 30, 2025.
Delaying could mean missing out entirely on this federal tax benefit.
Residential Energy Credits Discontinued After December 31, 2025
If you are considering energy-efficient improvements to your home, be sure to complete them before December 31, 2025, as these credits will be eliminated.
Qualifying Residential Energy Property improvements include:
Home energy audits
Windows, skylights, and exterior doors
Specified heat pumps and heat pump water heaters
Biomass stoves and boilers
These credits apply only to your primary residence.
SALT Deduction Limit Increase
The OBBBA also brings a significant boost to the State and Local Tax (SALT) deduction cap.
For 2025, the cap increases from $10,000 to $40,000.
In 2026, it rises slightly to $40,400.
From 2027 through 2029, it will increase by 1% each year.
⚠️ Phase-outs: This benefit will phase out for taxpayers with a modified adjusted gross income (MAGI) above $500,000 (or $250,000 for married filing separately) in 2025.
Clean Vehicle Credit & SALT Deduction Updates: What This Means for You
If you are in the market for an electric vehicle, moving sooner rather than later could save you thousands.
The higher SALT deduction cap may result in significant tax savings, especially for those in high-tax states. However, income phase-outs may reduce eligibility.
Strategic planning for both vehicle purchases and residential energy improvements will be key in 2025.
Tax laws can change quickly, and these updates highlight the importance of planning ahead.
Next Steps
If you would like to talk through how these changes could impact your personal or business situation, Goodman Bookkeeping & Tax Services, LLC is here to help.
📞 Call: 419-868-1040📧 Email: brittani@goodmantaxservices.com
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