Upcoming Expiration of Clean Energy Tax Credits

Save on Energy Efficiency Upgrades

If you’re considering ways to enhance your home’s energy efficiency, there’s a chance to save quite a bit of money. But you’ll want to seize the clean energy tax incentive before it’s too late.

Homeowners can still take advantage of the federal income tax credit for energy-efficient upgrades until the year’s end, though the deadline is approaching quickly. The tax credit for electric vehicles (EVs) runs out even sooner.

According to Flequer Vera, CEO of a clean energy company that focuses on solar panels and insulation, the installation of solar panels allows homeowners to claim a 30% tax deduction. “You can save thousands of dollars with an installation, which makes it very economically viable for homeowners,” Vera mentioned.

Upgrades like heat pumps and water heaters qualify as well, potentially saving taxpayers up to $3,200 with these energy-efficient improvements.

Why Act Quickly?

Vera warns that these installations need to be ordered soon, as they must be completed by December 31st to be eligible for the credits. It’s a good idea to consult an expert who can provide guidance on how to lower your energy costs effectively. “It could be as simple as checking a specific door and ensuring it meets certain qualifications,” said Kemley Washington.

Just remember to keep all your documents and receipts. Washington adds, “If you made improvements that weren’t credited last year, you could go back and update your tax return.”

EV Tax Credits

If you’re in the market for an electric vehicle, you need to snag a $7,500 federal tax credit by September 30th. “As long as we sign a contract by then, we have time, even if the vehicle isn’t delivered yet,” Washington explained.

General Manager Mitch Minnelli at a local dealership noted that many customers are eager to buy electric vehicles before the tax credit ends. “That’s $7,500 off, plus there could be additional manufacturer rebates,” he said.