Act Soon: OBBBA 2025 Ends Clean Energy Tax Breaks

The newly enacted One, Big, Beautiful Bill Act (OBBBA) represents a major move by President Trump and congressional Republicans to roll back a number of clean energy tax incentives originally introduced or expanded under the Inflation Reduction Act (IRA). Below is a summary of the key individual tax credits that will soon be scaled back or eliminated. Clean vehicle tax credits If you’re planning to buy a clean vehicle, consider acting soon to take advantage of expiring tax benefits: New clean vehicle credit. This credit offers up to $7,500 for qualifying new electric and fuel cell vehicles, depending on how the battery components and critical minerals are sourced. Vehicles that meet only one of the sourcing criteria may be eligible for a reduced $3,750 credit. Originally set to...

Individual Home Energy Tax Credits for 2023

Taxpayers who make home energy improvements in 2023 may be able to benefit from tax credits for a portion of the qualifying expenses. The credit amounts have been increased, and types of qualifying expenses were expanded, by the Inflation Reduction Act of 2022. This post is intended to assist taxpayers in comparing the tax credits available for making energy home improvements.  Who can claim energy credits There are two energy-related credits available to taxpayers who make qualifying improvements to their home: the Energy Efficient Home Improvement Credit,or the Residential Energy Clean Property Credit. A taxpayer may claim these credits in the year the qualifying improvement has been made to their primary home. Ordinarily, a taxpayer's primary home is where the taxpayer spends most of their time. Additionally, qualification...