The federal tax credits for various energy-related technologies that were part of the Biden 2022 IRA Legislation have been eliminated by federal legislation signed into law this month. 2025 is now the last year to claim a variety of federal clean energy, home energy efficiency, and electric vehicle tax credits, including:
- Section 25E (Used Electric Vehicles Credit): Ends September 30, 2025
- Section 30D (New Electric Vehicle Credit): Ends September 30, 2025
- Section 25C (Energy Efficient Home Improvement Credit) – includes energy efficiency improvements, heat pumps, and other measures: Ends December 31, 2025
- Section 25D (Residential Clean Energy Credit) – tax credit equal to 30% of the cost of renewable energy systems, including solar, geothermal, other measures: Ends December 31, 2025
If you plan to purchase an EV, you need to ACT NOW. Note that the list of EVs eligible for the $7,500 Federal Tax Credit has been limited in the past year, so check to see which vehicles are still eligible until the September 30 deadline. The Green Energy Consumers Alliance’s EV Finder is a great resource, listing the federal incentive eligibility of various EVs, along with other helpful information such as efficiency ratings and range. The website also indicates eligibility for the Massachusetts rebate of up to $3500, which remains in effect.
If you plan to install solar PV, you also need to move quickly to take advantage of the 30% federal tax credit. Even though the deadline is the end of the year, selecting a contractor and scheduling the installation can take a few months, so now is the time to start planning. Please note that the Massachusetts tax credit of up to $1,000 is still in effect.
Timeline for the installation of heat pump systems can be even longer, so moving quickly is essential.
The good news is that the Massachusetts Mass Save program is unaffected by the federal changes. Mass Save incentives for heat pumps, weatherization, and related home improvements are actually much larger than the expiring federal tax credits. So those state funding sources remain intact for the indefinite future.
For information about credit values and project eligibility, check out the Sustainability pages on the Town’s website for electric vehicles and for energy projects. Or for questions, reach out to the Town Sustainability Manager Gabby Queenan at gqueenan@needhamma.gov.
If you need assistance with figuring out what systems would make sense for your home, Green Needham’s “Energy Coach” can help you, free of charge. Put in a request on the Green Needham website.
