Are you considering solar panels for your home? If so, delay no further. The whopping 30% federal tax credit available for home solar projects will set with the sun on December 31, 2025. Part of the Inflation Reduction Act, the incentive is being revoked by the federal government, just as many Americans are reaping substantial savings on their electric bills, thanks to free solar power from panels on their own roofs or backyards. Electric rates are expected to rise, making future savings even larger. There’s still time to receive this credit if you purchase and install your system by the end of the year.
Not only is this subsidy disappearing at year’s end, so are rebates through the Energy Efficient Home Improvement Credit. This program offers up to $2000 savings on new heat-pump heating/cooling units and up to $1200 credit on modifications to make your home more energy-efficient. Again, it’s not too late, but you must hurry to take advantage of these substantial cost savings.
Finally, if you have been contemplating the replacement of your gasoline-fueled car with an electric vehicle, the fuse is even shorter. The $7500 federal rebate for new EVs ($4000 for used ones) will end on September 30.
For further information:
www.npr.org/2025/07/16/nx-s1-5462190/trump-tax-credit-solar-ev-heat-pump
www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit
By Jennifer Francis, Marion’s Energy Management Committee