As we approach the final stretch of 2025, several federal energy tax credits are nearing expiration—and some deadlines are closer than you might think. For clients considering energy-efficient upgrades or electric vehicle purchases, now is the time to take action and lock in valuable savings before these incentives disappear.
Electric Vehicle Credit — Deadline: September 30, 2025
New or Used Clean Vehicle Credit
- Up to $7,500 for qualifying new electric vehicles
- Contracts must be signed by September 30, 2025, even if delivery occurs later
- Vehicles must meet final assembly and battery sourcing requirements
There are income limits and vehicle price caps, as well, so please contact our office if you’re planning to take advantage of these soon-to-expire credits.
Residential Energy Credits — Deadline: December 31, 2025
Residential Clean Energy Credit
- 30% credit for solar panels, solar water heaters, and battery storage systems
- Systems must be installed by December 31, 2025
Energy Efficient Home Improvement Credit
- Covers 30% of qualified expenses for upgrades like insulation, windows, doors, and energy audits
- Annual limits include:
- $1,200 total for general improvements
- $600 for windows/skylights
- $250 per door (up to $500)
- $150 for home energy audits
- $2,000 for heat pumps, water heaters, and biomass stoves
These credits are part of the Inflation Reduction Act and are designed to encourage cleaner, more efficient energy use at home.
What Homeowners Should Do Now
- Confirm installation dates: Credits apply only to systems installed—not just purchased—before the deadline
- Keep documentation: Save receipts, product certifications, and audit reports
- Consult your tax advisor: We can help determine eligibility and ensure proper reporting on your tax return
Final Thoughts
These energy credits offer a rare chance to reduce your tax bill while investing in long-term savings and sustainability. If you’re considering upgrades or purchases, don’t wait—these opportunities may not be around next year.
For more details, visit IRS.gov or contact our office to discuss your options.
