Henrik Kam
Update for November 2025: While tax credits and federal incentives to purchase an EV has expired, there is still some time to qualify for home energy tax credits!
Trump’s disastrous budget law is eliminating tax credits that cut the costs of solar power, electric vehicles and home efficiency upgrades. The bill, passed by Republicans, slashed funding for clean energy incentives that save people money by:
- Rapidly phasing out tax incentives for wind and solar power, driving up our energy costs and making the grid less reliable.
- Cutting support to make our homes and buildings more efficient and more affordable to operate, taking money out of your wallet, and
- Eliminates financial help for new and used electric vehicles, stalling the American-made EV industry and resulting in job losses across the country.
While state funding and other federal programs still exist to deflect costs for smart energy decisions, this particular stream of support will soon dry up. For a limited time, you can still access these federal tax credits before they are eliminated. Here is how you can save on upgrades that have far-reaching benefits, but you have to act fast!
Electric Vehicles
- Buy a new or used EV before September 30th to get a refund on your taxes or get a discount directly from the dealership!
- Get $7,500 back for a new, qualifying EV if your household earns less than $300,000 for married couples filing jointly or $150,000 for single tax filers.
- Get up to $4,000 for a qualifying pre-owned EV if you’re a married couple filing jointly and make less than $150,000 or $75,000 for single filers.
- You can also get a discount of up to $7,500 on a leased EV directly from an auto dealer that claims the Commercial Clean Vehicle Credit and passes the savings on to you.
- You can get up to $1,000 back when you install qualifying EV charging equipment on a property that meets requirements. The credit is available until June 30, 2026.
Home Energy Upgrades
- The Energy-Efficient Home Improvement Credit (25C) offers tax incentives for energy audits, heat pumps, insulation, and more. It expires on December 31, 2025. The project must be complete by then! Previously, a filer could claim this benefit every year, but now is your last chance.
- You could use this credit to get an energy audit of your home to identify the most effective places to upgrade your home.
- Purchase and install a qualifying heat pump for space heating/cooling or a heat pump water heater to get up to $2,000 off your federal taxes.
- Upgrade insulation or better sealing windows and/or exterior doors and get an additional $1,200 back on your taxes.
- You can also use the Residential Clean Energy Credit (25D) to get up to 30% of the project for rooftop solar, home battery storage, geothermal heat pumps, etc., back on your taxes.
- You are not limited to using it for one project only, so now may be the time for a full clean energy makeover if you have the means. These projects must be completed by the end of this year, December 31, 2025.
There are just a few months left for consumers to access these federal tax credits that will lower your energy bills, support clean energy and manufacturing jobs, cut air and water pollution, and make our grid more reliable. You will still be able to access local and state incentives to fund some of these upgrades, but to get money back through these federal tax credits be sure to make your purchases before the relevant deadlines.