With the signing of the One Big Beautiful Bill Act on July 4, the clock officially began ticking toward the elimination of federal tax incentives for many renewable energy and energy-efficiency projects, including electric vehicles, solar panels, and heat pumps.
However, if you act quickly, you could save thousands of dollars on technologies that will continue to pay dividends for your wallet and the planet for years to come.
How long will EV tax credits be available?
If you want to claim the $7,500 tax credit on a qualified new EV or the $4,000 tax credit on a used EV, you'll need to have your lease or purchase agreement set no later than Sept. 30.
Zero Emission Transportation Association research director Corey Cantor suggested to The Washington Post — one of the outlets that quickly compiled a roundup of expiring Inflation Reduction Act tax credits — that it might be wise for prospective buyers to start their search as soon as possible.
"A car is often the second-largest purchase a person makes. It's not like going to Amazon Prime and buying immediately. You do need to shop around and get a sense of what's out there," Cantor said. Fortunately, if you want to install an EV charger at home, you have a bit more wiggle room. The 30% credit (up to $1,000 maximum) will be available until June 30, 2026.
How long do I have before home improvement tax credits expire?
Installing solar panels — which could bring your monthly energy costs to $0 — is one of the best ways to boost the savings and eco-benefits associated with EV ownership. EnergySage is helping customers snag the best deals and save up to $10,000 on installation costs.
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If you intend to take advantage of the 30% solar tax credit, your project must be underway by Dec. 31. The same goes for heat pumps. These next-gen heating and cooling devices can save homeowners up to $1,000 annually on energy bills thanks to their efficiency, which in turn helps reduce asthma-linked, heat-trapping pollution generated if the grid relies on dirty fuels.
"It's important for people to start doing their planning right now … and start meeting with contractors they might want to work with," Rewiring America CEO Ari Matusiak told the Post.
Also becoming ineligible for a 30% tax credit at the end of the year are weatherization projects and home energy audits, among other things.
What happened to the home rebates program?
While the 30% federal tax incentives for many green projects (with certain limitations) are on their way out, the home rebates will stay intact until 2031 or the $4.5 billion in funding dries up.
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How much money do you plan to spend on home improvement projects this year? Click your choice to see results and speak your mind. |
Under $1K 😎 Every state except South Dakota has opted into the program, and a handful of participants have already started distributing funds. You can claim up to $8,000 for a heat pump, $1,750 for a heat pump water heater, and $840 for an induction range or heat pump clothes dryer. Rebates for electrical and weatherization upgrades are also available, per the Post.
Depending on your state, you may be able to stack these rebates with federal and local incentives to maximize your savings. The nonprofit Rewiring America's free Incentive Calculator is another tool to help you sort through your options.
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