By Jes Wickham
With the passing of H.R. 1, titled 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.
| Tax Credit | Covers | Previous credit end date | Current (New) Credit End Date |
|---|---|---|---|
| Energy Efficient Home Improvement Credit | 30% of certain qualified expenses, including efficiency improvements (i.e., electric panel upgrades, insulation materials, etc.) and home energy audits | 2033 | Dec. 31, 2025 |
| Alternative Fuel Vehicle Refueling Property Credit | 30% of the cost of property to store or dispense clean-burning fuel or recharge electric vehicles | 2033 | June 30, 2026 |
| Clean Vehicle Credit | Up to $7,500 for eligible buyers of qualified clean vehicles | 2033 | September 30, 2025 |
| New Energy Efficient Home Credit | Up to $5,000 per home for eligible contractors who build or substantially reconstruct qualified new energy-efficient homes | 2033 | June 30, 2026 |
| Qualified Commercial Clean Vehicles Credit | Up to $40,000 for businesses and tax-exempt organizations that buy a qualified commercial clean vehicle | 2033 | September 30, 2025 |
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.
| Tax Credit | Who’s It For? | Eligible Project(s) | Recent Changes |
|---|---|---|---|
| Alternative Fuel Vehicle Property Tax Credit | Consumers, fleets, and prospective charging site hosts | EV charging infrastructure placed in rural or underserved communities | Charging infrastructure must be placed into service by June 30, 2026 |
| Commercial Clean Vehicle Credit | Fleet operators (both public and private) | Purchase and deployment of a light-, medium-, or heavy-duty EV | Vehicle must be placed into service by September 30, 2025 |
| New Clean Vehicle Credit | Consumers | Purchase of a new, qualified EV | Vehicle must be purchased by September 30, 2025 |
| Used Clean Vehicle Credit | Consumers | Purchase of a used EV with an MSRP of $25,000 or less | Vehicle must be purchased by September 30, 2025 |
| Qualified Commercial Clean Vehicles Credit | Up to $40,000 for businesses and tax-exempt organizations that buy a qualified commercial clean vehicle | 2033 | September 30, 2025 |
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.