Most household clean energy tax credits have ended. The One Big Beautiful Bill Act terminated the electric vehicle credits for vehicles acquired after September 30, 2025, and the home energy credits for improvements placed in service or installed after December 31, 2025, according to the IRS FAQs on the energy credit terminations. That means 2025 was the last year most homeowners could claim the 30% credits for solar panels, heat pumps, insulation and similar upgrades. This guide explains what ended, what you can still claim on a 2025 return, and what remains for businesses.
Clean Energy Tax Credits: Termination Dates
| Credit | What it covered | Ends for |
|---|---|---|
| Energy efficient home improvement credit (25C) | Insulation, windows, doors, heat pumps, water heaters, home energy audits | Property placed in service after December 31, 2025 |
| Residential clean energy credit (25D) | Solar panels, solar water heaters, battery storage, geothermal heat pumps, small wind | Expenditures made after December 31, 2025 (an expenditure is made when installation is completed) |
| New clean vehicle credit (30D) | New EVs and plug-in hybrids | Vehicles acquired after September 30, 2025 |
| Previously-owned clean vehicle credit (25E) | Used EVs | Vehicles acquired after September 30, 2025 |
| Commercial clean vehicle credit (45W) | Business EVs | Vehicles acquired after September 30, 2025 |
| Alternative fuel refueling property credit (30C) | EV chargers and other refueling equipment | Property placed in service after June 30, 2026 |
| New energy efficient home credit (45L) | Builders of efficient new homes | Homes acquired after June 30, 2026 |
| Energy efficient commercial buildings deduction (179D) | Efficient commercial building systems | Property whose construction begins after June 30, 2026 |
What You Could Claim on a 2025 Return
- Residential clean energy credit: 30% of the cost of qualifying solar, battery, geothermal and wind systems, with no annual dollar cap, for systems whose installation was completed by December 31, 2025.
- Energy efficient home improvement credit: 30% of qualifying costs, generally up to $1,200 a year, plus up to $2,000 for heat pumps, heat pump water heaters and biomass stoves, for a combined maximum of $3,200 for 2025.
- Clean vehicle credits: Up to $7,500 for a new EV or $4,000 for a used EV, if the vehicle was acquired by September 30, 2025.
Both home credits are claimed on Form 5695. See our guide to IRS Form 5695.
Key Rules on the Cutoff Dates
- Solar paid in 2025 but installed in 2026 does not qualify. The IRS treats a 25D expenditure as made when installation is completed, so payment alone in 2025 is not enough.
- EVs under contract by September 30, 2025: A vehicle is “acquired” when a written binding contract is signed and a payment, even a nominal down payment or trade-in, is made. If that happened by September 30, 2025, the credit can be claimed when you take delivery, even if delivery came later.
- Leased EVs: The commercial credit that leasing companies passed through as discounts also ended for vehicles acquired after September 30, 2025.
Missed a Credit? Amend Your Return
If you completed a qualifying home project or bought a qualifying EV in 2023, 2024 or 2025 and did not claim the credit, you can generally file an amended return within three years of the original filing date. See how to amend a tax return.
Unused Residential Clean Energy Credit Carryforwards
The residential clean energy credit is nonrefundable, but any amount you could not use because your tax was too low carries forward to future years. Carryforwards from qualifying systems installed by the end of 2025 can generally still be used on later returns. The energy efficient home improvement credit, by contrast, has no carryforward.
What Still Exists for Businesses
Some business-level clean energy tax credits continue under the 2025 law with new limits, including technology-neutral credits for clean electricity production and investment, the clean fuel production credit and the clean hydrogen credit for projects that meet construction and other deadlines. These are complex and depend on when construction began. See the clean hydrogen production credit for one example. Homeowners and individual car buyers generally no longer have a federal credit available for new purchases.
What Homeowners Can Still Do
- Utility rebates and state incentives may still be available for heat pumps, insulation and solar. Check your utility and local programs.
- Energy savings remain the main financial benefit of efficiency upgrades.
- Home sale basis: Improvements increase your home’s cost basis, which can reduce taxable gain when you sell, after any credit you claimed.
- Business use: If part of your home is used for business, a share of qualifying improvements may be depreciable.
Clean Energy Tax Credits Timeline
| Date | What happened |
|---|---|
| August 2022 | Inflation Reduction Act extended and expanded the credits through the early 2030s |
| July 4, 2025 | One Big Beautiful Bill Act signed, setting early termination dates |
| September 30, 2025 | Last day to acquire an EV for the clean vehicle credits |
| December 31, 2025 | Last day for home improvements and residential clean energy installations |
| June 30, 2026 | Cutoffs for refueling property, new efficient homes and the 179D deduction |
Frequently Asked Questions
Can I still get a tax credit for solar panels in 2026?
No. The residential clean energy credit ended for systems installed after December 31, 2025.
Is there still an EV tax credit in 2026?
No, for vehicles acquired after September 30, 2025. Vehicles under a binding contract with a payment by that date can still qualify when placed in service.
Can I claim a 2025 energy credit now?
Yes. If you have not filed your 2025 return or need to amend it, you can still claim credits for qualifying work completed in 2025.
Do I lose my solar credit carryforward?
Generally no. Unused residential clean energy credits from systems installed by the end of 2025 can still carry forward.
Final Thoughts
The era of broad household clean energy tax credits ended in 2025. If you made qualifying upgrades or bought an EV before the cutoffs, make sure the credit is on your return, and keep records for any carryforward. For new projects, look to utility and local incentives instead.
Have questions about how this applies to your situation? Book a free consultation with Aric and get answers from a CPA.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
