Federal financial assistance is available for a limited time for Americans looking to go solar, buy an electric vehicle, and upgrade their home with cleaner, more affordable energy. With the clean energy tax credits, choosing rooftop solar, heat pumps, or electric vehicles can save consumers thousands of dollars up front — while helping lower their monthly energy bills for years to come. But under recent federal changes adopted by Congress, many of these federal incentives have new deadlines and are set to expire soon.
“At a time when household budgets are already stretched thin and the cost of living is too darn high, switching to an electric vehicle, installing a heat pump, or making your home more energy efficient can help save on everyday costs and pay dividends in the long run,” said U.S. Climate Alliance co-chair Wisconsin Governor Tony Evers. “Now is a great time for folks thinking about making the switch to take advantage of federal clean energy tax credits while they are still available.”
“The federal government is making clean cars more expensive — taking away these incentives right when Americans need them the most,” said U.S. Climate Alliance co-chair California Governor Gavin Newsom. “In addition to spreading the word about these incentives before they disappear, the Alliance’s governors will continue fighting for additional solutions to lower energy costs and save people money on their bills.”
“These clean energy tax credits have helped American families and businesses save money, and now is the time to take full advantage of them,” said Climate Mayors chair Phoenix Mayor Kate Gallego. “We have a narrow window to get the word out and help our communities benefit from these proven, popular credits which are making clean energy more affordable and accessible across the country.”
Until September 30, consumers can save up to $7,500 on electric vehicle purchases, on top of any existing state and local rebates. And through the end of this year, consumers can save tens of thousands of dollars on a long list of home energy and efficiency upgrades, in addition to existing state and local incentives. Consumers can identify a full list of federal clean energy tax credits and their expiration dates using Rewiring America’s calculator. More detail on expiring residential clean energy tax credits can be found in the chart below.
States and cities across the two coalitions will be engaging consumers and businesses over the coming months to ensure as many people as possible can take advantage of these federal incentives before they expire. Just last week, Colorado announced the launch of its statewide Energy Savings Navigator, a new easy-to-use digital tool that connects the state’s consumers to more than 600 energy rebates and 18 different energy bill assistance programs, including federal tax credits expiring later this year.
“We are taking action to ensure that Coloradans can easily access clean energy savings, especially in the face of tariff uncertainty,” said U.S. Climate Alliance member Colorado Governor Jared Polis. “We continue to do all we can to make people aware of how you can reduce costs on energy bills and keep money in your pocket.”
Following expiration of these time-limited federal incentives, Americans will continue to be able to leverage other federal, state, and local programs to support their transition to clean energy solutions.
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Federal Clean Energy Tax Credits (in order of expiration) |
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|---|---|---|---|---|---|
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New EV (30D) |
Up to $7,500 |
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Used EV (25E) |
Up to $4,000 |
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Heat Pump A/C or Heater (25C) |
Up to $2,000 |
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Heat Pump Water Heater (25C) |
Up to $2,000 |
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Weatherization / Insulation (25C) |
Up to $1,200 |
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Electrical Panel (25C) |
Up to $600 |
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Home Energy Audit (25C) |
Up to $150 |
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Rooftop Solar (25D) |
30% of qualifying costs |
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Battery Storage (25D) |
30% of qualifying costs |
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Geothermal Heating (25D) |
30% of qualifying costs |
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EV Charger (30C) |
Up to $1,000 |
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Courtesy of Rewiring America
