01/22/2026
2025 ENERGY CREDITS
EV CREDIT & SOLAR)
SOLAR CREDITS
For 2025, homeowners can claim the Residential Clean Energy Credit (RCEC) for a 30% tax credit on new, qualified clean energy property, including solar, installed by December 31, 2025, with no annual limit, before it phases down in 2033. To qualify, the solar system must be new, installed in the U.S., and placed in service by year-end, with homeowners claiming it on Form 5695. After 2025, commercial credits (like for leases/PPAs) shift to Section 48E, with different rules and deadlines for businesses to pass savings to homeowners.
Key Details for 2025 (Residential):
Credit Amount: 30% of costs.
Eligibility: New solar PV, battery storage, geothermal heat pumps, etc., installed on your main or secondary U.S. home.
Deadline: Must be installed and placed in service by December 31, 2025, to get the 30% rate. If you plan to install solar, ensure your system is fully operational by December 31, 2025, to maximize your 30% credit.
Non-Refundable: Can reduce your tax bill to zero, but excess credit carries forward to future years.
For 2026, the major change for solar credits is the end of the 30% federal tax credit for residential systems installed after December 31, 2025.
EV CREDITS
The federal EV tax credit for new and used vehicles expired for purchases after September 30, 2025, ending the $7,500 (new) and $4,000 (used) incentives under the One Big Beautiful Bill Act. To claim credits for 2025, you must have acquired an eligible vehicle by that date, with potential eligibility extending if a binding contract was signed, even if delivery occurred later, but new purchases in 2026 and beyond receive no federal EV credit.
Key Deadlines & Rules for 2025
New EVs: Up to $7,500 credit for vehicles acquired by September 30, 2025, meeting strict North American assembly, battery sourcing (critical minerals/components), and income caps.
Used EVs: Up to $4,000 credit for vehicles purchased by September 30, 2025, with different income and vehicle price limits.
Credit Transfer: Buyers could transfer the credit to dealers for an immediate discount at purchase.
What This Means for 2025 Buyers
Act by Sept 30: You needed to finalize a purchase or have a binding agreement (with deposit) before this date to qualify for federal credits on your 2025 taxes.
No More Federal EV Credit (Post-Sept 2025): Federal incentives for new EVs are gone for 2026 onward.
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