New Deadlines From the OBBB on Energy Efficiency Tax Credits

The GOP passed a bill that changes the Deadlines for tax credits on energy efficiency upgrades.

It is important to note these if you are in or will soon be in a project that could take advantage of them! There is still time to use some of these credits but you will have to move fast. Here are the details and resources to get you started.

EV tax credits ended in September of this year (2025). Energy efficient home deadlines are ending at the end of the year (Dec 2025). Energy credits such as solar panels and batteries end next summer (June 2026). Please consult  a tax professional to be sure you qualify.

Here is the breakdown:


Energy Efficient Homes and Energy Tax Credits 


25C Energy efficient home improvement credit -The cutoff is Dec 2025

Applicable in homes built after 2005.

There is a $12,000 cap for most categories.

This credit covers 30% of qualifying upgrade costs, up to the following limits

$600 limit for for exterior windows and skylights

600 limit for Energy property

Home Energy Audits can get you up to a $150 tax break

The upgrades this applies to include

Building Envelope

  • Insulation

  • Air sealing

  • windows

  • doors ($250 per door, with a $500 cap)

  • skylights

HVAC $2,000 (the $1,200 limit may be exceeded for this category)

  • heat pumps

  • heat pump water heaters

  • An electric or natural gas heat pump water heater

  • An electric or natural gas heat pump

  • A central air conditioner

  • A natural gas, propane or oil water heater water heater

Electrical panel upgrades (when installed with a heat pump or HPWH) 

  • panelboards

  • sub-panelboard

  • branch circuits

  • feeders

An ID number must be created by the manufacturer and reported during your tax filing.


25D Residential clean energy credit -The Cutoff is Dec 31 2025 

The credit is worth 30% of the cost to install qualifying systems that use solar, wind, geothermal, biomass, or fuel cell power to produce electricity, heat water, or regulate the temperature in your home.

  • Solar electric property expenditures

  • solar water heating property expenditures

  • fuel cell property expenditures

  • small wind energy property expenditures

  • geothermal heat pump property expenditures

  • and battery storage technology expenditure

Maximum payout for any taxable year shall not exceed $500 with respect to each half kilowatt of capacity of the qualified fuel cell property


45L New energy efficient home credit -The cutoff is now June 30th 2026

This applies to:

  • Energy Star Residential New Construction Program

  • Energy Star Manufactured New Homes program

  • Energy Star Single-Family New Homes National Program Requirements(3.1, 3.2 or the newest versions depending on the date a dwelling was acquired), 

  • Zero energy ready home program

Multifamily

Must meet Energy Star Multifamily New Construction National Program Requirements and Energy Star Multifamily New Construction Regional Program Requirements

The maximum payout is 

  • (A) $2,500 in the case of a residence which meets the requirements of subparagraph (A) of subsection (c)(1) (and which does not meet the requirements of subparagraph (B) of such subsection), and

  • (B) $5,000 in the case of a residence which meets the requirements of subsection (c)(1)(B).


Alternative Fuel refueling Property Credit - Deadline June 30 2026

30% or the cost of equipment up to $1,000 whichever is less.

This covers:

  • EV charging equipment

  • Bidirectional- can charge an EV and also discharge electricity to the grid


High efficiency electric home rebate - Deadline Sep 30, 2031

With an annual income less than 150% of the median income of your area

  • $840 for a stove, cooktop, range, oven or heat pump clothes dryer;

  • $1,750 for a heat pump water heater; and

  • $8,000 for a heat pump for space heating or cooling.

Rebates for non-appliance upgrades might be available up to the following amounts:

  • $1,600 for insulation, air sealing and ventilation;

  • $2,500 for electric wiring; and

  • $4,000 for an electric load service center upgrade.

There are limits on the amount certain families can receive.

For instance, a rebate can't exceed 50% of the cost of a qualified electrification project if the family's annual income is from 80% to 150% of the area's median income.

Each qualifying family is limited to no more than $14,000 in total rebates under the program.

So far, the GOP has not tried to eliminate this program, however they may shut down Energy Star. Which is currently used to qualify for many of these credits. 


Clean Vehicles and Refueling Property Tax Credits

Expires June 30th 2026

Up to $7,500 for qualifying EVs, known as "clean vehicles," and $4,000 for used models

Income limits for new vehicles

Income limits for Used vehicles 

Price limits

  • Vans and pick-up trucks must have an MSRP of less than $80,000

  • Cars need a MSRP of less than 55,000

  • Used must cost 25,000 or less

  • Model year at least 2 years before you bought it

  • Less than 14000 pounds

  • Eligible for FCV or plug-in EV with a battery capacity of at least 7 Kwh


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