In July 2025 H.R. 1 was enacted and it changed many of the deadlines for federal clean energy incentives. There's still time to take advantage of the incentives and make upgrades, you just need to be aware of the new deadlines so your system is activated in time. Here's our round-up of the new deadlines.
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RESIDENTS
25E & 30D Electric Vehicle Credit: Sept. 30, 2025
- The $7,500 credit for new and $4,000 for dealer-sold used electric vehicles will expire Sept. 30, 2025.
25C Energy Efficient Home Improvement Credit: Dec. 31, 2025
- Individuals who make energy-efficient improvements to their homes, including weatherization, electrical panel upgrades, home energy audits, and purchases of appliances like heat pumps. Provides up to $3,200 annually in tax credits, now improvements must be placed in service by Dec. 31, 2025.
25D Residential Clean Energy Credit: Dec. 31, 2025
- Households that install clean energy, including solar, wind, geothermal, fuel cells, or batteries are eligible for 30% tax credit of qualifying costs if the system is in place and activated by Dec. 31, 2025.
30C (alternative fuel vehicle refueling property credit): June 30, 2026
- Households that install EV chargers are eligible for a property credit for chargers placed in service by June 30, 2026.
BUSINESSES + TAX-EXEMPT ORGANIZATIONS
30C (alternative fuel vehicle refueling property credit): June 30, 2026
- Businesses that install EV chargers or dispensers of certain alternative fuels, like ethanol or biodiesel are eligible for a property credit for infrastructure placed in service by June 30, 2026.
45W (commercial clean vehicle credit): Sept. 30, 2025
- Businesses and tax-exempt organizations that purchase a qualified commercial clean vehicle before Sept. 30, 2025.
45L New Energy-Efficient Homes Credit: June 30, 2026
- Contractors who build new energy-efficient homes.
- This credit is now available for developers of homes purchased by June 30, 2026.
45Y (clean electricity production tax credit) and 48E (clean electricity investment tax credit)
- Developers of clean power projects. The amount of money offered by 45Y is based on the amount of electricity produced, while 48E is based on the total cost of the project.
- Wind and solar projects must now begin construction within 12 months of H.R.1’s July 4 enactment or be placed in service by Dec. 31, 2027. Projects that start construction within 12 months must finish within four years.
- Nuclear, geothermal, battery, and hydropower projects can still access the full credit as long as they begin construction by 2033, when the value of the credit will begin to phase down.
- Starting immediately, projects are subject to strict restrictions on the involvement of “foreign entities of concern” like Chinese companies and individuals.
45V (clean hydrogen production tax credit)
- Developers of facilities that make low- or zero-carbon hydrogen that begin construction before Dec. 31, 2027.
45X (advanced manufacturing production tax credit)
- Manufacturers of clean-energy technologies, such as the components used in solar panels, batteries, and wind turbines.
- The credit will be eliminated for wind components sold after Dec. 31, 2027.
- The credit for critical minerals will now end by 2034.
- Starting immediately, projects are subject to strict restrictions on the involvement of “foreign entities of concern” like Chinese companies or individuals.
45Z (clean fuel production credit)
- Producers of low-emissions transportation fuels, including “sustainable aviation fuel.”
- The budget bill extends this credit to the end of 2029.
- Producers are immediately subject to strict rules on the involvement of “foreign entities of concern,” like Chinese firms or individuals.
179D Energy-Efficient Commercial Building Construction Credit: June 30, 2026
- Commercial building owners that make significant energy-efficiency improvements or use energy-efficient equipment in new construction. 179D was a permanent part of U.S. tax code.
- This credit is now only available for property that begins construction by June 30, 2026.
Rural Energy for America Program (REAP)
- The next deadline for REAP applications is now Dec. 31, 2025 (instead of July 1 through Sept. 30).
- The future of the REAP program is uncertain and the 50% cap from the Inflation Reduction Act may be reduced to the 25% funded through the Farm Bill.
- There was also a change such that any projects not eligible for the tax credit are also not allowed to use the Modified Accelerated Cost Recovery System (MACRS) depreciation to depreciate the project in only 7 years. Projects can still potentially use bonus depreciation or depreciate over 20 years or less.
- Energy Storage projects continue to have the original tax credit of 30% through 2033 but do need to meet the FEOC rules starting in 2026.
