Many Popular Home Energy Tax Credits Now Expire in 2025
The recently passed One Big Beautiful Bill (OBBB) has moved up the expiration date for several major federal tax credits that help homeowners save money when making their homes greener.
If you’ve been thinking about upgrading your home with energy-efficient improvements—now is the time to act. The recently passed One Big Beautiful Bill (OBBB) has moved up the expiration date for several major federal tax credits that help homeowners save money when making their homes greener.
Here’s what you need to know:
What’s Still Available in 2025
What the OBBB Changed
When the Inflation Reduction Act passed in 2022, many of these credits were set to last until 2032. OBBB has dramatically shortened that timeline:
Most homeowner credits now expire at the end of 2025—meaning your project must be installed and placed in service before December 31, 2025.
EV charger incentives end mid-2026, not years later as originally planned.
New rules around where components are made could affect eligibility for certain systems, especially solar and battery storage.
Waiting could mean losing these credits entirely.
Example: How This Can Save You Money in 2025
Let’s say you install:
Heat pump HVAC: $8,000 → Credit = $2,000
Attic insulation: $3,000 → Credit = $900
New energy-efficient windows: $6,000 → Credit = $600
Total Tax Savings: $3,200 in just one year (subject to limits within combinations of credits).
How to Maximize Your Savings
Plan early – Contractors will get busy as deadlines approach.
Confirm equipment eligibility – Not every product qualifies; check ENERGY STAR and IRS guidelines.
Document everything – Keep invoices, manufacturer certificates, and installation dates.
Coordinate with your tax advisor – Make sure you’re claiming credits correctly.
Bottom line:
The clock is ticking. If you’ve been holding off on solar panels, heat pumps, or other energy-efficient upgrades, 2025 is your window of opportunity to lock in thousands in federal tax savings.
This newsletter is for general informational purposes and is not tax advice. Please consult your tax professional to determine your eligibility.