Many popular home energy tax breaks are being phased out by the end of 2025 following President Donald Trump's signing of the Big Beautiful Bill on July 4. That includes credits for upgrades like rooftop solar panels, upgraded windows, and electric heat pumps, which could save people thousands of dollars.
According to The New York Times, you can still claim some savings if you take action before the end of the year. The Energy Efficient Home Improvement Credit, which covers 30% of the cost of things like insulation and the previously mentioned upgrades, is still available. The max is $2,000 for heat pumps or water heaters, plus up to $1,200 more for other upgrades.
Installers say not to wait since permitting and inspections can take weeks.
"You might only have until October or November," Brett Bouchy, CEO of solar company Freedom Forever, said, per the Times.
TCD Picks » Induction Cooking
💡Discover the induction option that’s just right for your needs and your home
More specifically, according to Canary Media, the Big Beautiful Bill puts more than 600 gigawatts' worth of solar at risk, including the wind and battery projects that could have come to fruition after 2027. The Times article explained specifically that credits for rooftop solar installations are now scheduled to expire 180 days after the bill's signing instead of sticking to continuing through 2032.
Twelve states have since had to pause their energy rebate programs. As early as March 2025, CPR News reported that Colorado paused a $140 million federally funded program that was meant to help low- and middle-income households upgrade. Although a federal court overturned the freeze and funds were restored, state officials have warned there is still no firm launch date for those home upgrade discounts.
For people who don't owe enough taxes to use those credits, two rebate programs from 2022 — the HEAR Program and the HOMES Program — that were funded with $9 billion can still be used. Together, these rebates can add up to as much as $14,000 per household according to the report.
One covers electric upgrades like heat pumps, induction stoves, and new wiring for households that are making less than 150% of their local median income. The other is for efficiency upgrades in homes under 80% of the local median income.
Save $10,000 on solar panels without even sharing your phone number Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers in your area. To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best options for your needs, and their expert advisers can help you compare quotes and pick a winner. Solar panels can save you more than $50k over their 25-year lifespan, and EnergySage can help you save as much as $10k on installation. Which begs the question — isn't that worth an email or two? |
No matter the upgrade, it's worth exploring what you can qualify for before the deadlines hit. The programs that remain available can still put thousands back into your pocket.
|
Should the government continue to give tax incentives for energy-efficient home upgrades? Click your choice to see results and speak your mind. |
Absolutely 💯 
Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
