Tax Deductions That Expire in 2025

Urgent: Want an Electric Vehicle? Act by September 2025

If you’re considering the purchase of an electric vehicle for your business or personal use, now is the time to pay close attention.On July 4, the president signed the One Big Beautiful Bill Act that terminates the following three major electric vehicle tax credits, effective September 30, 2025:

Section 45W—Commercial Clean Vehicles Credit. Up to $7,500 for light electric vehicles and up to $40,000 for heavy-duty commercial vehicles.

Section 30D—New Clean Vehicle Credit. Up to $7,500 for qualifying new electric vehicles, with requirements for domestic sourcing of battery components and minerals.

Section 25E—Previously Owned Clean Vehicle Credit. Up to $4,000, or 30 percent of the purchase price, for eligible used electric vehicles.If you are looking to buy an electric vehicle and want the tax credit, now is the time to act.

2025—Your Last Chance to Claim the Solar Tax Credit

If you’re considering solar panels or other renewable energy upgrades, 2025 is your last chance to take full advantage of the 30 percent Residential Clean Energy Credit (RCEC).

What Is the RCEC?

The RCEC is a federal, non-refundable tax credit equal to 30 percent of the cost of qualified clean energy systems, including:

• Solar electric panels

• Solar water heaters

• Geothermal heat pumps

• Small wind energy systems

Eligible properties include primary and secondary residences, as well as rentals occupied by the taxpayer. Landlords who do not reside in the property are not eligible.

What Changed?

The RCEC expiration date is now December 31, 2025, thanks to the newly enacted One Big Beautiful Bill Act.

Act Now

Installation takes time. From selecting a system to full installation and inspection, the entire process can span months. To qualify for the credit, you must place your system in service by December 31, 2025.Although the RCEC is non-refundable, unused credits can carry forward to future tax years.

2025 Is Your Last Chance for Home Energy Improvement Tax Credits

Current tax law (after enactment of the One Big Beautiful Bill Act) allows homeowners to claim up to $3,200 in 2025 tax credits for energy-efficient home improvements, but only if those improvements are placed in service on or before December 31, 2025.

What's Available?

There are two key credits to know about.

1. Up to $1,200/year for energy improvements to your primary residence, including:

• Exterior doors (up to $500 total)

• Windows and skylights (up to $600)

• Insulation and air sealing materials

• Energy-efficient furnaces, boilers, water heaters, air conditioners, and electric panels

2. Up to $2,000/year for advanced systems installed in either your main or second home:

• Electric or natural gas heat pumps

• Electric or natural gas heat pump water heaters

• Biomass stoves and boilers

Additionally, a $150 credit is available for a certified home energy audit, which helps you identify the most cost-effective upgrades.

Important Details

These are non-refundable annual credits, so they reduce your tax bill—but don’t result in a refund.

Improvements must meet specific energy-efficiency standards and be installed (not just purchased) by the deadline.

You must subtract subsidies or rebates (such as those from utilities) from the cost basis used to calculate your credit.

Take Action Now

If you’ve been considering upgrades such as insulation, new windows, or high-efficiency heating systems, 2025 is your last chance to take full advantage of these credits.