The newly passed One, Big, Beautiful Bill Act (OBBBA) marks a significant rollback of clean energy tax incentives originally introduced or expanded under the Inflation Reduction Act (IRA). If you’re planning to take advantage of these benefits, now is the time—many are being scaled back or eliminated sooner than expected.
Clean Vehicle Tax Credits
New Clean Vehicle Credit
- Up to $7,500 for qualifying new electric or fuel cell vehicles.
- Reduced to $3,750 if only one battery sourcing requirement is met.
- Originally set to expire in 2032, now ends September 30, 2025.
- Price cap: $55,000 for cars, $80,000 for SUVs/trucks/vans.
- Income limits: $150,000 (single), $300,000 (joint), $225,000 (head of household).
Used Clean Vehicle Credit
- Up to $4,000 or 30% of purchase price (whichever is less).
- Applies to purchases from licensed dealers.
- Vehicle price cap: $25,000.
- Income limits: $75,000 (single), $150,000 (joint), $112,500 (head of household).
- Expires September 30, 2025.
Alternative Fuel Refueling Property Credit
- For EV chargers or clean fuel dispensers installed at a primary residence.
- Credit: 30% of installation cost, up to $1,000 per item.
- New deadline: June 30, 2026 (previously 2032).
Home Energy Tax Credits
Energy Efficient Home Improvement Credit
- Covers 30% of qualified expenses for upgrades like windows, insulation, heat pumps, and energy audits.
- Annual cap: $1,200, with item-specific limits:
- $250 per exterior door ($500 total)
- $600 for windows, A/C, and panels
- $150 for energy audits
- $2,000 for heat pumps and biomass systems
- Now expires December 31, 2025 (was 2032).
Residential Clean Energy Credit
- 30% credit for solar, wind, geothermal, and biomass systems.
- No income limits.
- New expiration: December 31, 2025 (was 2034).
Take Action Now
With the OBBBA accelerating the phase-out of these clean energy incentives, proactive planning is essential. If you’re considering a qualifying purchase or upgrade, act soon to lock in your savings.
Need help evaluating your eligibility or timing? Feel free to reach out—I’m here to help.