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Clean-Energy Tax Credit Phaseouts Starting as of October 1, 2025

Financial Planning Taxes

A 30-second read by the Baron Team:  As part of the “One Big Beautiful Bill Act” (OBBBA) that was signed into effect on July 4, 2025, there are several “clean energy” tax credits that will expire. 

Please see below some deadlines to be aware of if you were considering any of these purchases and/or improvements.

  • Clean Vehicle
    • If you were thinking of purchasing an electric vehicle, now would be the time.  The $7,000 credit for a new electric vehicle and $4,000 credit for a used electric vehicle will be ending after September 30, 2025. 
  • Alternative Fuel Vehicle Refueling Property Credit
    • In the same vein, if you bought an electric vehicle and are now having the electric charging equipment installed at your home, you will want to do so prior to June 30, 2026. The up to a $1,000 credit will be going away at that time. 
  • Energy Efficient Improvement Credit
    • If you are considering making any energy efficient improvements at your home, the up to $1,200 credit will be expiring after December 31, 2025. This includes enhancements to windows, doors, installing, heating/cooling equipment, etc. 
  • Residential Clean Energy Credit
    • If you have installing residential solar panels, wind power, etc. on your list, you have until December 31, 2025, to get the up to 30% of the cost of purchasing or installing credit. 

Make sure to make any of these purchases or improvements before the stated deadlines. Additionally, keep any receipts or related documents that confirm the date the purchase or work was completed. 

We are working with clients to review how this bill impacts their financial plans.
Please contact your Baron Team if you have any questions.

Source:  For more information on the “OBBBA” and tax planning, see this Michael Kitces article.

Disclosure: This is a general communication being provided for informational purposes only. This material is not intended to be relied upon as a forecast, research, legal, tax or investment advice. Please consult with a qualified tax professional for personal advice.