WHO KNEW You Can Still Act to Take Advantage of Disappearing Clean Energy Tax Credits?
This info is brought to you by the Cornish Energy Committee. We appreciate their sharing it with us.
The recently enacted budget law contains major changes to various federal incentives for renewable energy projects, including solar arrays, electric vehicles (EV's) and home battery backup systems. In short, many incentives are being phased out quickly, though timelines vary. So, if you are considering or already planning projects or purchases, you will need to act quickly.
In brief:
EV’s: incentives expire Sept. 30, 2025: $7,500 tax credit for new vehicles; $4,000 for used.
Solar & home batteries: 30% federal tax credit expires Dec. 31, 2025.
Green Home Improvements: 30% tax credit expires Dec. 31, 2025.
EV chargers: 30% tax credit expires June 30, 2026 (but associated wiring credit expires Dec. 31, 2025).
For a more detailed explanation of the key changes for residents and their corresponding timelines, please go to this LINK.
The good news is that even though the tax credits will disappear, there are 2 rebate programs that will survive: the Home Electrification and Appliance Rebate (HEAR) program and the Home Efficiency Rebates (HER) program. These are income-dependent rebates that are administered by individual states. NH is still processing the implementation of these rebates, which will probably not be available until mid-2026. But when they are available, they will pay up to $14,000 for heat pumps, induction ranges, insulation and wiring (HEAR); and up to $8,000 for whole home energy retrofits (HER). The Rewiring America website has 2 great tools for planning home electrification: Link1 and Link2.
If you have questions, contact Joanna Sharf at josharf@gmail.com