Clean Energy Tax Credits Are Ending Soon: What Homeowners and Buyers Need to Know

Several major federal clean energy tax credits will end over the next two years as part of the One Big Beautiful Bill. These credits have offered substantial savings for homeowners upgrading to efficient energy systems and for taxpayers purchasing electric vehicles or chargers. With the upcoming expiration dates, anyone planning a project or purchase should act quickly to take advantage of the current incentives.

Residential Clean Energy Tax Credits

The Residential Clean Energy Credit currently provides a 30 percent tax credit for qualified home energy systems, including:

• Solar panels

• Battery storage

• Small wind turbines

• Geothermal heat pumps

• Fuel cells

• Solar water heaters

Expiration: This credit ends on December 31, 2025. Projects must be installed and commissioned by that date to qualify.

Energy-Efficient Home Improvement Credit

This credit offers 30 percent off a wide range of home efficiency upgrades, including:

• Heat pumps

• Water heaters

• Insulation

• HVAC systems

• Exterior doors and windows

• Home energy audits

Expiration: Ends on December 31, 2025. All upgrades must be placed in service before the deadline.

EV Purchase Credits

Federal EV incentives currently include:

• Up to $7,500 for a qualifying new electric vehicle

• Up to $4,000 for a qualifying used electric vehicle

• Income limits apply

Expiration: These credits end on September 30, 2025.The vehicle must be purchased and placed in service on or before that date to qualify.

EV Charger Credit

The federal credit for home EV charging equipment offers:

• 30 percent credit, up to $1,000, for home charger installation

• Credit applies to the charger and related required electrical upgrades

Expiration: Ends on June 30, 2026. Equipment must be placed in service by the deadline.