Several clean energy tax incentives were cut short by the One Big Beautiful Bill Act (OBBBA). If you purchased an electric vehicle or made eco‑friendly home improvements last year, you may still qualify for valuable tax credits on your 2025 return. Unlike deductions, tax credits reduce your tax liability dollar‑for‑dollar, making them especially powerful.
Electric Vehicle Tax Credits
If you bought a qualifying clean vehicle before September 30, 2025, you may be eligible for one of these credits:
New Clean Vehicle Credit
Buyers of new electric or fuel cell vehicles can claim up to $7,500, depending on battery sourcing and mineral requirements. Vehicles meeting only one sourcing rule may qualify for $3,750. To be eligible, cars must be priced under $55,000, SUVs/trucks/vans under $80,000, and final assembly must occur in North America. Income limits apply: $150,000 for single filers, $300,000 for joint filers, and $225,000 for heads of household.
Used Clean Vehicle Credit
If you purchased a used electric or fuel cell vehicle from a dealer, you may claim up to $4,000 or 30% of the purchase price (whichever is lower). The vehicle must cost less than $25,000, and income limits are lower: $75,000 for single filers, $150,000 for joint filers, and $112,500 for heads of household.
Green Home Improvement Credits
Eco‑friendly upgrades made in 2025 may also qualify for credits:
Energy‑Efficient Home Improvement Credit
This nonrefundable credit covers up to 30% of qualified expenses, with a general annual cap of $1,200. Specific limits apply: $150 for energy audits, $250 per exterior door (up to $500), $600 for windows, and $2,000 for heat pumps.
Residential Clean Energy Credit
Homeowners installing renewable energy systems such as solar, wind, or geothermal can claim 30% of the cost. There are no income limits or caps.
Alternative Fuel Vehicle Refueling Property Credit
If you installed EV charging equipment at home in 2025, you may claim 30% of the installation cost, up to $1,000 per port. Installations completed by June 30, 2026, may qualify for the credit on your 2026 return.
Conclusion
If you purchased a clean vehicle or invested in green home improvements, you may still benefit from these credits despite the OBBBA’s early expiration dates. Review your eligibility carefully to ensure you don’t miss out on these valuable tax breaks.