Big Changes Ahead: What You Need to Know About Energy Credits & Incentives

The One Big, Beautiful Bill Act (OBBBA) has brought sweeping changes to U.S. tax law, and one of the areas most impacted is energy-related tax credits and incentives. For years, taxpayers have relied on credits for clean vehicles, solar energy, and efficiency upgrades. But starting in 2025 and 2026, many of these benefits will no longer be available.

Here’s a breakdown of the major changes and what they could mean for you.

Clean Vehicle Credit

• Repealed for vehicles acquired after September 30, 2025.

Previously Owned Clean Vehicle Credit

• Repealed for vehicles acquired after September 30, 2025.

Qualified Commercial Clean Vehicle Credit

• Repealed for vehicles acquired after September 30, 2025.

Takeaway: If you’re planning to buy an electric vehicle (EV) or plug-in hybrid, consider making your purchase before September 30, 2025 to take advantage of these credits.

Alternative Fuel Refueling Property Credit

• Repealed for property placed in service after June 30, 2026.

Energy Efficient Home Improvement Credit

• Repealed for property placed in service after December 31, 2025.

Residential Clean Energy Credit (Home Solar Credit)

• Repealed for expenditures made after December 31, 2025.

Takeaway: Homeowners considering solar panels, energy-efficient windows, HVAC upgrades, or charging stations should move quickly. Projects completed after these repeal dates will not qualify for the credits.

New Energy Efficient Home Credit

• Repealed for homes acquired after June 30, 2026.

Takeaway: Builders and developers of energy-efficient homes need to factor this into pricing, planning, and marketing before the incentive disappears.

Clean Electricity Investment Credit Clean Electricity Production Credit

• Credits are repealed for wind and solar placed in service after 2027, unless construction begins before July 4, 2026.

• Energy storage technology (like battery systems) remains eligible.

• Stricter sourcing rules apply for facilities beginning construction after December 31, 2025 (no sourcing from “foreign entities of concern”).

• Credits not available if the property is leased to a third party (applicable for tax years beginning after July 4, 2025).

Takeaway: Commercial investors in solar, wind, or clean electricity projects have a limited window to secure these incentives. Planning and timing of construction will be critical.

The repeal of energy credits under OBBBA is a major shift for individuals, businesses, and investors. If you’ve been considering:

• Buying an electric vehicle,

• Installing solar panels,

• Upgrading your home’s energy efficiency, or

• Investing in clean energy projects.

  
  

Now may be the best time to act—before these opportunities disappear.

At 2 Cherry Tax, we help clients navigate these changes and maximize available credits before they sunset. Contact us today to create a personalized tax strategy and make sure you don’t leave money on the table contact@2cherrytax.com