With the passage of the OBBBA, the energy efficiency and electric vehicle (EV) credits will be expiring sooner than originallly planned.
This chart shows the individual credits and their new expiration dates. The common credits are the popular EV credits and the energy efficient home improvement credits. If you are in the market for an EV, you will want to take delivery on or before 9/30. But note that if you are on the upper end of the AGI limit, you may not be eligible for the EV credit, so you will want to double-check your prior year and current year AGI.
Energy efficient home improvements and residential clean energy credits will also end at the end of 2025. Note that the specific term ‘placed in service’ and ‘expenditure made’ are directly in the bill language, so, you will want to be sure that your home improvement will qualify. Energy efficiency home improvement includes energy efficient doors, windows, insulation material, AC, water heaters, etc. Residential clean energy credit is good for solar panels, wind energy, geothermal heat pump, etc. If you were planning to make home improvements anyways, now is a great time to plan to do so before these credits expire.
The chart also shows other related credits which can be geared toward business owners / contractors or harder to qualify for as a home owner. For example, the alternative fuel refueling property credit requires the home itself to be in a qualified area. If you are interested in these credits, please make sure to review the specific conditions for each of them before finalizing your decision.