If you’ve been considering solar panels, energy-efficient home upgrades, or purchasing an electric vehicle, the time to act is now. This guide explains what’s ending, the critical deadlines, and how to maximize your savings before these opportunities disappear.
Residential Solar and Clean Energy Credits
Current Benefits
The Residential Clean Energy Credit currently allows homeowners to claim a 30% tax credit for qualifying systems, including solar panels, battery storage, geothermal heat pumps, small wind turbines, and fuel cells. The credit applies to equipment and professional installation.
Example: On a $20,000 solar system, the 30% credit would reduce your federal tax liability by $6,000.
New Timeline
Under updated law, the residential clean energy credit now ends after December 31, 2025 (no phase-down schedule). Your system must be installed and placed in service by that date to qualify.
Home Energy Efficiency Tax Credits
What They Cover
The Energy Efficient Home Improvement Credit can be worth up to $3,200 per year, combining category limits such as:
- Up to $2,000 for qualified heat pumps and heat-pump water heaters
- Up to $1,200 in total for items like insulation, air sealing, windows, and exterior doors (subject to per-item caps)
- Home energy audits and certain electrical panel upgrades also qualify
New Timeline
This credit now expires December 31, 2025. Improvements must be installed and placed in service by that date to be eligible.
Electric Vehicle (EV) Tax Credits
New EVs
The Clean Vehicle Credit offers up to $7,500 for qualifying new EVs that meet requirements for final assembly in North America, MSRP caps, income limits, and battery component/critical mineral sourcing.
Used EVs
The Previously Owned Clean Vehicle Credit provides up to $4,000 for eligible used EV purchases (vehicle must be at least 2 years old, cost $25,000 or less, and be purchased from a licensed dealer).
New Timeline
Both new and used EV credits end September 30, 2025. For eligibility, the vehicle must be acquired by that date, and dealers must submit the required time-of-sale report. Point-of-sale advance payments will no longer be available after the program sunsets.
Alternative Fuel Vehicle Refueling Property Credit
Homeowners installing EV charging equipment may claim 30% of costs up to $1,000 per item for qualifying residential property. This credit is scheduled to end after June 30, 2026 for property placed in service after that date.
Why Acting Now Matters
Installation Timelines
Solar projects often require 2–4 months from contract to utility interconnection. Heat pumps and other upgrades can be quicker but are subject to contractor availability—delays are common near deadlines.
Rising Costs
As expiration dates approach, demand historically increases for qualifying equipment and labor, which can raise prices and extend lead times.
Immediate and Long-Term Benefits
Credits reduce your tax bill dollar-for-dollar today while upgrades deliver years of lower utility or fuel costs. Waiting risks missing both the upfront credit and ongoing savings.
Take Action Before It’s Too Late
With credits for solar, home efficiency, and EVs all ending in 2025 (and home charging incentives ending in mid-2026), the next year is a crucial window. To maximize benefits:
- Get multiple quotes and verify equipment eligibility with your contractor
- Confirm you’ll meet placed-in-service deadlines
- For EVs, confirm model eligibility, income/MSRP limits, and ensure the dealer files the time-of-sale report
- Keep documentation (invoices, certifications) for tax filing
Bottom line: Don’t delay. These historic incentives are set to sunset soon, and missing the deadlines could cost you thousands.