Clean Energy Tax Incentives may be ending – Act Now!

A major shift in federal energy policy is on the horizon—and it could directly impact your wallet, your home, and our climate future. The proposed “One Big Beautiful Bill Act,” recently passed by the House of Representatives, could eliminate key clean energy tax incentives as early as the end of 2025, including tax credits for electric vehicles, solar panels, and clean energy home improvements. The bill has passed the House of Representatives but still needs to pass the Senate and be signed by the President. In its current form, the bill would eliminate many of the Inflation Reduction Act (IRA) sponsored clean energy initiatives.

The IRA created, expanded, or extended many clean energy tax credits, including:

1. The electric vehicle (EV) tax credit, worth up to $7,500 for new qualifying vehicles (summary of qualifying EVs – confirm with dealer or accountant).
2. The previously-owned clean vehicle credit, worth up to $4,000 or 30% of the sales price for used EVs, if purchased through a dealer and under $25,000 (additional details).
3. The energy efficient home improvement credit, worth up to $3,200 annually on qualifying items like doors, windows, and natural gas heat pumps.
4. The residential clean energy credit, worth up to 30% of qualifying expenditures, like solar panels.

Most of these initiatives, and various other energy credits included in the IRA, were set to expire at the end of 2032. The new bill would change that timeline to eliminate many of these provisions as early as December 31, 2025. Energy-efficient upgrades don’t just reduce carbon emissions—they also reduce utility bills, improve indoor air quality, and add value to your home. Many of these incentives were designed to make clean energy more accessible to everyday families. With this federal support potentially ending sooner than expected, acting now ensures you don’t leave money on the table.

While the proposed federal changes would affect nationwide programs, California remains committed to leading on clean energy. State-level incentives may still be available—and can be combined with federal credits for even greater savings. Visit The Switch is On to find rebates and incentives. Zip code 91362 shows that single-family homes are eligible for 41 different incentives in this area.

The future of federal clean energy incentives is uncertain—but opportunities remain in place today. If you're considering an upgrade, don’t wait. Start exploring your options now so you're ready to act before incentives disappear.

Visit IRS Energy Guidance for the latest tax credit guidance. Check this link for federal energy-saving tips.

Find California-specific programs at www.cpuc.ca.gov/clean-energy

To view the bill, click here.