By Jes Wickham
With the passing of H.R. 1, dubbed by The White House as the “One Big Beautiful Bill Act,” changes are coming to the available tax credits for residential and commercial clean energy technologies and services.
There is still time to take advantage of the tax credits before they expire. Contact your local Community Energy Advisor if you have questions or to get help applying for tax credits.
A summary of the changes is below.
Chart modelled after one by Sidley Law.
Clean Energy Tax Credits
Several clean-energy-related tax credits, including the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit, will be terminated December 31, 2025.
The Energy Efficient Home Improvement Credit, originally scheduled for termination in 2033, applies to qualified energy-efficiency improvements and similar measures. The Residential Clean Energy Credit, originally scheduled to end in 2035, applies to investments in renewable energy for a home such as solar, wind, geothermal, fuel cells, or battery storage technology.
Electric vehicle (EV) and battery tax credits are being rolled back. Specifically, the Alternative Fuel Vehicle Property Tax Credit, New Clean Vehicle Credit, and Used Clean Vehicle Credit, all originally scheduled to terminate in 2033, will end earlier than originally planned.
As explained by the Electrification Coalition, the Alternative Fuel Vehicle Property Tax Credit applies to EV charging infrastructure placed in rural or underserved communities, and applicants now must place charging infrastructure into service by June 30, 2026, to qualify. The new and used clean vehicle credits apply to consumers purchasing new or used EVs, respectively, and applicants now need to purchase EVs by Sept. 30, 2025, to qualify.
Chart provided by the Electrification Coalition.
Commercial Tax Credits
There also are changes coming to the commercial clean energy sector. Several production tax credits for clean energy, including clean hydrogen, clean energy, and clean electricity production, are ending sooner than initially scheduled. Visit New York State Energy and Research Development Authority’s (NYSERDA) website for a full breakdown of the credits and their new deadlines. In addition, the Advanced Energy Project Credit Program will face restrictions and will be phased out.
Summary
Under the new bill, some tax credits will be phased out earlier than originally scheduled, and some will face increased requirements, restrictions, and new qualification deadlines.
There is still time to apply to these programs before they expire. Contact your local Community Energy Advisor for more information and help navigating these incentives.