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 in July 2025. 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
Below are the details for specific energy-related technologies:
Electric Vehicle (EV)
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. For information about credit values and project eligibility, check out the Sustainability pages on the Town’s website for electric vehicles.
Energy at Home
Solar PV/Hot Water
If you plan to install solar PV and/or solar hot water, you also need to move quickly to take advantage of the 30% federal tax credit. Even though the deadline is the Dec. 31, 2025, 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.
Heat Pumps
The timeline for the installation of heat pump systems can be even longer than for Solar PV, so moving quickly is essential. The good news is that the 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.
Incentives
For information about tax credit/rebate amounts and project eligibility, check out the Energy Efficiency at Home page on the Town’s website. Or for questions, reach out to the Town Sustainability Manager Gabby Queenan at gqueenan@needhamma.gov.
Green Energy Coaching Program
Are you thinking about getting an EV, installing solar PV/hot water or replacing a heating system, are interested in available green technologies, and need help what makes sense for you? Green Needham’s “Energy Coach” can help you, free of charge. To request help from our Energy Coach, just go to our website and provide a few details about your project.
