Recent legislation has shortened the timeline for several popular clean energy tax incentives, making now a critical time to review your eligibility.
If you purchased an electric vehicle or made energy-efficient home improvements in 2025, you may still qualify for valuable tax credits on your upcoming return—but the window to benefit from these breaks is closing quickly.
Remember, tax credits reduce your tax liability dollar-for-dollar (unlike deductions, which reduce the amount of income subject to tax). So tax credits are especially valuable.
Did you buy an electric vehicle?
If you bought an eligible clean vehicle by September 30, 2025, you may be able to claim one of these tax credits on your 2025 return:
New clean vehicle credit. Buyers of new electric and fuel cell vehicles may be able to claim a credit up to $7,500, depending on how the battery components and critical minerals were sourced. Vehicles that meet only one of the sourcing criteria may be eligible for a $3,750 credit. This credit was originally set to expire after 2032. But, under the OBBBA, it expired on September 30, 2025.
The maximum manufacturer’s suggested retail price for a vehicle to be eligible for the credit is $55,000 for cars and $80,000 for SUVs, trucks and vans. The vehicle also must have undergone final assembly in North America. In addition, the credit isn’t allowed for vehicles with any battery components from a “foreign entity of concern.” For you to qualify, your 2025 adjusted gross income (AGI) must not exceed $150,000 ($300,000 if you’re married filing jointly and $225,000 if you’re filing as a head of household).
Used clean vehicle credit. Buyers of used electric or fuel cell vehicles may be able to claim a credit of up to $4,000 or 30% of the purchase price — whichever is lower — if they bought the vehicle from a dealer. Like the new clean vehicle credit, this credit had been set to expire after 2032 but, under the OBBBA, it expired on September 30, 2025.
The maximum purchase price for a vehicle to be eligible for the credit is $25,000. For you to qualify, your 2025 AGI must not exceed $75,000 ($150,000 if you’re a joint filer and $112,500 if you’re a head-of-household filer).
Did you make green home improvements?
If you made certain home upgrades in 2025, you may be eligible for one of these tax credits on your 2025 return:
Energy-efficient home improvement credit. This nonrefundable credit equals up to 30% of qualified expenses to make your home more energy efficient. The maximum credit you can claim for 2025 generally is $1,200. There are no AGI-based limits, but there are credit caps that vary by item. Some examples of 2025 credit limits are $150 for energy audits, $250 per exterior door ($500 total), $600 for windows and $2,000 for heat pumps (superseding the usual $1,200 limit). Before the OBBBA, this credit was scheduled to end after 2032.
Residential clean energy credit. This nonrefundable credit equals 30% of the cost of eligible renewable energy systems such as solar, wind and geothermal installations. There generally are no caps or AGI-based limits. Before the OBBBA, this credit was set to end after 2034.
Are you eligible for a tax credit?
One more clean energy credit you might be able to claim on your 2025 return is the alternative fuel vehicle refueling property credit. You may be eligible if last year you installed equipment at your home to recharge electric vehicles. The credit equals 30% of the installation cost, up to $1,000 per charging port.
If you didn’t install a charging port in 2025, it’s not too late. If you install one by June 30, 2026, you potentially can claim the credit on your 2026 return next year. (Before the OBBBA, this credit was also scheduled to expire after 2032.)
Even though many clean energy credits have been cut short, there’s still an opportunity to benefit if you acted before the deadlines. Because these credits can substantially reduce your tax bill, it’s worth taking a closer look at your purchases and improvements from 2025. If you’re unsure about your eligibility, getting professional guidance from your Rudler, PSC advisor at 859-331-1717 can help ensure you don’t leave valuable savings on the table.
RUDLER, PSC CPAs and Business Advisors
This week's Rudler Review is presented by Josh Myers, Senior Accountant and Becca Thorman, CPA, CVA.
If you would like to discuss your particular situation, contact Josh or Becca at 859-331-1717.
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