Skip to content
Link copied to clipboard
Link copied to clipboard

How to use tax credits for EVs and home projects before they expire

Everything you need to know about which green tax credits Congress just voted to eliminate, when they expire, and who qualifies.

Solar panels are installed on the roof of a home in Lakewood, Ohio, April 16, 2025.
Solar panels are installed on the roof of a home in Lakewood, Ohio, April 16, 2025.Read moreSue Ogrocki / AP

Are you thinking of buying an electric car, putting up solar panels, or replacing your doors, windows, insulation, or electrical panels? Now’s your last chance to take advantage of thousands of dollars of federal tax credits for these projects.

Republican lawmakers voted to end government incentives for a wide range of renewable energy and energy-efficiency oriented purchases as part of the tax and immigration bill.

Federal EV tax credits will disappear Sept. 30, instead of in 2032 as originally planned under President Joe Biden. Other home improvement credits go away at the end of the calendar year. The sudden deadlines could set off a scramble to buy cars and start home projects before the credits expire.

“These are the kinds of things people make decisions about when they need to — when machines come to the end of their useful lives or when they’re not working correctly,” said Ari Matusiak, CEO of Rewiring America, a nonprofit that advocates for electrification. “Now we have a perverse incentive where, if you want to get … a discount, you have to rush out and do it before the end of the year.”

One source of federal cash for homeowners from Biden’s Inflation Reduction Act will survive: the Home Electrification and Appliances Rebate Program, which offers thousands of dollars for installing heat pumps and electric stoves, replacing old wiring, or upgrading insulation.

Here are the deadlines to apply for green tax credits before they’re gone.

EVs: Sept. 30

You’ll have to sign a lease or purchase agreement by Sept. 30 to qualify for up to $7,500 in tax credits for a new EV or hydrogen fuel cell vehicle or $4,000 for a used vehicle.

Hundreds of thousands of Americans use the credit annually, according to IRS data. Many dealerships will file for the credit on your behalf and just give you an up-front discount on the sticker price of the car. Otherwise, you can apply for the credit when you file your taxes next year, as long as you ink the deal by the deadline.

It’s worth visiting a dealership or starting your search online soon to leave yourself time to weigh your options, according to Corey Cantor, research director at the Zero Emission Transportation Association, an EV industry group.

“A car is often the second-largest purchase a person makes. It’s not like going to Amazon Prime and buying immediately,” he said. “You do need to shop around and get a sense of what’s out there.”

You can check the current list of which car and truck models qualify for credits. New vans, SUVs, and pickup trucks have to cost less than $80,000, and all other new vehicles have to cost less than $55,000. Used vehicles have to cost less than $25,000 and be at least two years old.

The new-vehicle credit is available to single filers making less than $150,000 per year, or married couples filing jointly who make less than $300,000. The used-vehicle credit is available to single filers making less than $75,000 per year, or married couples filing jointly who make less than $150,000.

Green home improvements: Dec. 31

Credits for green home improvement projects sunset on Dec. 31. The work has to be underway by the end of the year to qualify.

“It’s important for people to start doing their planning right now … and start meeting with contractors they might want to work with,” Matusiak said. Rewiring America has an electrification planning tool that can help you figure out which upgrades make sense for your home and what work you might want to start before credits expire.

The Residential Clean Energy Credit covers 30% of the cost of buying and installing household solar panels, home batteries, solar water heaters, geothermal heat pumps, fuel cells, or small wind turbines. There’s no dollar limit on how much you can claim under this credit, although on average it comes out to $5,084.

The Energy Efficient Home Improvement Credit covers up to $3,200 each year for homeowners who upgrade to more efficient appliances or improve insulation. It will also pay for an auditor to inspect your home and suggest ways to make it more energy efficient. The average claim is worth $882, and most people use it to upgrade their insulation, doors, and windows.

There are no income limits for either credit: Among the 3.4 million Americans who claimed one or both credits in 2023, nearly two-thirds of the money went to households earning $100,000 or more, according to the most recent IRS data.

Home EV chargers: June 30, 2026

Credits for installing a home EV charger end with the fiscal year. You have to install a charger by June 30, 2026, to get a credit for 30% of the cost, up to a maximum of $1,000. To qualify, your home has to be in a low-income or nonurban census tract. You can look up your home here.

Although you have a year to qualify for a credit for a home charger, you have only until the end of this year to get a tax credit for any electrical equipment upgrades you may need to install the charger.

While federal credits for home chargers are going away, many automakers — including Ford, Hyundai, and GM — offer their customers rebates and discounts on installing home chargers when they buy or lease an EV.

Home improvement rebates survive

Some federal rebates for home improvement projects made it through the latest round of budget cuts.

The home electrification and appliance rebates cover part of the cost of buying the most energy-efficient heat pumps, water heaters, dryers, and stoves as well as upgrading insulation and electrical equipment.

If your household makes between 80% and 150% of your area’s median income, the rebate may cover up to half the cost. If your household makes less than that, the rebate may cover the entire cost, up to a maximum limit.

The program is run by individual states. Every state except South Dakota has agreed to participate — although only a few have actually started distributing the money. Most are still setting up their programs. The rebates are scheduled to last until 2031 or until their original $4.5 billion funding runs out.

The Home Efficiency Rebates Program, which pays part of the cost of insulating or sealing your home or upgrading to more efficient heating and cooling appliances, will also continue. So far, Michigan, Wisconsin, Indiana, North Carolina, Georgia, and D.C., have started distributing these rebates.

You can find other rebates from your utility company, or state or local government by plugging your address into Rewiring America’s savings calculator at homes.rewiringamerica.org/calculator.