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Key Tax Credits for Individuals Slated to End in 2025

The “One Big Beautiful Bill Act” (OBBBA) signed into law on July 4, 2025, accelerates the expiration of several major clean energy tax incentives originally created under the Inflation Reduction Act (IRA). Below is a breakdown on what is changing and when.

Residential Clean Energy Credit

  • 30% credit for new solar panels, wind systems, geothermal heat pumps, or fuel cells or battery storage technology. This non-refundable credit can only be claimed for your personal residence. You may be able to claim a credit for certain improvements made to a second home located in the United States that you live in part time and don’t rent to others.
  • Qualified expenses may include labor costs for onsite preparation, assembly or original installation of the property.
  • Expires: December 31, 2025 — no gradual phase-out.
  • Projects must be completed and operational before the end of 2025 to claim the credit.

Energy-Efficient Home Improvement Credit

  • Covers 30% of qualifying upgrades like insulation, HVAC, windows, & doors, up to $3,200/year.
  • The credit is broken down into categories with individual maximums:
  • $1,200 for energy efficient property costs and certain energy efficient home improvements, with limits on exterior doors ($250 per door and $500 total), exterior windows and skylights ($600) and home energy audits ($150).
  • $2,000 per year for qualified heat pumps, water heaters, biomass stoves or biomass boilers.
  • Property acquired and installed in 2025 must be sourced from a Qualified Manufacturer.
  • Expires: December 31, 2025

EV Credits & Charger Installations

  • New clean vehicle credit and used clean vehicle credit both expire September 30, 2025.
  • 30% tax credit for home EV charging station is set to end June 30, 2026.

What It Means for You

Homeowners Installing Solar

  • To secure the 30% solar credit or home improvement credits, complete your work before December 31, 2025.
  • Some providers allow leases or PPAs up to 2027 to qualify via commercial credits.
  • Other states and local incentives may still be available beyond federal repeal.

Buyers of New or Used EVs

  • To claim up to $7,500 (new) or $4,000 (used), purchases must be completed by September 30, 2025.

Those Planning Home Efficiency Projects

  • Projects (e.g. insulation, windows, HVAC) must be placed in service by December 31, 2025, to qualify for the Energy-Efficient Home Improvement credit.
  • A new requirement for 2025, Qualified Manufacturers will be assigned a 4-digit QM number that will be required to claim the credit on property placed in service.

Why the Urgency?

  • The policy changes were enacted with no gradual phase-down, unlike earlier expectations which stretched into 2032–2034.
  • Executive actions tightened guidelines around credit eligibility and foreign-sourcing restrictions, increasing compliance complexity
  • Homeowners and installers are accelerating projects to meet the deadline.

Bottom Line

If you’re an individual homeowner, EV buyer, or planning energy upgrades, 2025 is essentially the last opportunity to claim significant federal tax credits. After that:

  • The 30% residential clean energy credit disappears.
  • Credits for EV purchases and home upgrades also vanish.
  • Consult with a qualified tax advisor or installer now to make sure your expenses are eligible and timely.

Acting before the deadlines can help you lock in savings of tens of thousands on solar, EVs, or home energy projects.

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CHRISTINA IMPERIOLI

Supervisor, CPA

Christina Imperioli is a Supervisor at Accavallo & Company, LLC, where she specializes in the preparation and review of individual and business tax returns across a variety of industries. With a focus on accuracy, client service, and technical expertise, she plays a key role in helping clients navigate complex tax matters.

She began her career as a Staff Accountant at The Innovative CPA Group, quickly rising through the ranks to Senior Accountant and ultimately Supervisor, demonstrating a strong commitment to professional growth and leadership.

Christina is a Certified Public Accountant and an active member of both the Connecticut Society of CPAs (CTCPA) and the American Institute of Certified Public Accountants (AICPA). She holds a Bachelor of Business Administration in Financial Accounting from Western Connecticut State University.

Throughout her career, she has worked with clients in the real estate, construction, and retail sectors, bringing valuable insight and industry-specific knowledge to every engagement.

Outside of work, she enjoys traveling with her husband and son, spending time with her three dogs—two rescues named Cole and Indigo, and a Brussels Griffon named Louie—and exploring local bookstores. Christina is a passionate reader and podcast enthusiast, she often listens to new episodes during her daily commute.

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Sherri Fisher is a Tax Manager at Accavallo & Company, LLC.  Sherri has longstanding expertise in Trust and Estate Taxation, Eldercare, and Estate planning. Sherri appreciates the relationships she has built with estate planning attorneys and advisors, to provide a team approach to assisting her clients. Sherri also has seasoned experience in business and individual taxation and is partial to assisting start-ups in developing overall accounting and operating plans.

Prior to joining Accavallo & Company, LLC, Sherri was a manager in a large firm, servicing high net worth trust clients, business, and personal clients. She was also a Partner in a large bookkeeping firm, which specialized in cloud accounting systems for regional and national companies. Sherri led a team in assisting clients to organize their accounting systems.  She is a graduate of Florida Atlantic University with a B.S. degree in Accounting.    

Sherri’s experience includes working with companies and organizations in a variety of industries including:

  • Investment Trusts

  • DAPT and Family Investment Partnerships

  • Estate and Probate Administration

  • E-Commerce

  • Manufacturing

  • Construction

  • Real Estate Investment

  • Marketing and Service-based industries

In addition to her professional accomplishments, Sherri is an Intuit Advanced Pro Advisor, Intuit Future Firm Advisory Board member, member of the Valley WIN Network, and proudly served as past Connecticut Public School liaison for the Yale Tommy Fund for Childhood Cancer. Sherri enjoys time with her family, Cleveland sports, thrifting and gardening.