DON’T MISS THESE DEADLINES for Federal Tax Credits!

Deadlines are fast approaching for several clean energy tax credits impacted by HR1, known as the “One Big Beautiful Bill Act” (OBBBA), enacted on July 4, 2025. While news headlines have created confusion over qualifying for tax credits, the following programs ARE STILL OPEN. Here’s what we know.

Clean Vehicle Credits are Available UNTIL SEPTEMBER 30, 2025

  • Section 25E: PREVIOUSLY-OWNED VEHICLE CREDIT
    A credit of up to $4,000 is allowed for previously-owned clean vehicles acquired ON or BEFORE September 30, 2025.
  • Section 30D: NEW CLEAN VEHICLE CREDIT
    A credit between $3,750 and $7,500 (depending on manufacturing and battery sourcing requirements) is allowed for a qualifying new clean vehicle acquired ON or BEFORE September 30, 2025.
  • Section 45W: COMMERCIAL CLEAN VEHICLE CREDIT
    A maximum credit of $7,500 (for vehicles under 14,000 lbs) or $40,000 (for vehicles over 14,000 lbs) will be allowed for any qualified commercial vehicle acquired ON or BEFORE September 30, 2025.

NOTE: In many cases, leasing is an even better deal, as the full $7,500 credit applies to all models, regardless of manufacturing and battery sourcing requirements. Many manufacturers are also offering special financing rates and additional cash-back incentives, that coupled together, make leasing more appealing than outright ownership.

For purposes of sections 25E, 30D, and 45W, a vehicle is “acquired” as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal downpayment or a vehicle trade-in.

Residential Solar and Efficiency Credits Available UNTIL DECEMBER 31, 2025

  • Section 25C: ENERGY EFFICIENT HOME IMPROVEMENT CREDIT
    A credit of 30% of qualifying project costs is allowed for qualifying renovations completed BEFORE December 31, 2025.
  • Section 25D: RESIDENTIAL CLEAN ENERGY TAX CREDIT
    A credit of 30% of qualifying project costs for installation of residential clean energy will be allowed for any expenditures made BEFORE December 31, 2025.

ADDITIONAL Credits Available UNTIL JUNE 30, 2026

  • Section 30C: ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT
    Individuals, non-taxable entities (NTEs) and businesses may claim a credit for alternative fuel vehicle refueling property, including electric vehicle charging equipment, in an eligible location, for property placed in service ON or BEFORE June 30, 2026.
  • Section 45L: NEW ENERGY EFFICIENT HOME CREDIT (for Qualifying Builders and Home Buyers)
    A credit of up to $5,000 will be allowed for any new energy efficient conventional or manufactured home built and acquired ON or BEFORE June 30, 2026. A credit of $1,000 per unit is also allowed for qualifying multifamily dwellings built and acquired ON or BEFORE June 30, 2026.
  • Section 179D: ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION
    A calculated credit will be allowed for qualifying energy efficiency improvements to commercial property that begin construction BEFORE June 30, 2026.

All told, the time to pursue these and other energy efficiency projects is NOW.

Read more about clean energy investments here:

DOWNLOAD CEDI’s Fact Sheets for Farms and Businesses:

DOWNLOAD CEDI’s Fact Sheet on Elective (Direct) Pay for Non-Taxable Entities (NTEs):

Contact your local Energy District for for further information on planning improvements or evaluating clean energy investments. Local governments, schools, nonprofits, and residents may also qualify for FREE technical assistance in planning clean energy investments by contacting CEDI’s EECBG Team.

Posted: August 28, 2025

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Andrew Johnson

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Advocacy Commercial Resources Energy Technologies Inflation Reduction Act National News News Residential Resources EV Legislation clean energy energy efficiency energy transition residential resources solar energy tax credits

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