A Few Things to Explore Before the End of 2025
As we approach the end of 2025, several important tax credits and incentives are set to expire. If you’ve been considering certain purchases or home improvements, now is the time to take action. Here are the key items to keep in mind:
Electric Vehicle Tax Credit: The federal tax credit of up to $7,500 for qualified new electric vehicles will be eliminated for any electric vehicle acquired after September 30, 2025. If you've been thinking about going electric, now is the time to make your purchase.
Alternative Fuel Refueling Property Credit: This credit, which covers the installation of EV chargers and other alternative fuel equipment, will be eliminated for property placed in service after June 30, 2026. Consider installing your EV charger sooner rather than later to take advantage of this credit.
Energy Efficiency Home Improvement Credit: Credits for qualified energy efficiency upgrades, such as doors, windows, insulation, and heat pumps, will be eliminated for improvements made after December 31, 2025. If you have home improvement projects in mind, completing them by the end of the year will ensure you can still claim these credits.
Residential Clean Energy Credit: The 30% tax credit for solar, wind, geothermal, battery storage, and other renewable energy systems will be repealed for expenditures made after December 31, 2025. If you're considering renewable energy upgrades, act now to maximize your savings.
New Energy Efficient Home Credit: Homebuilders can currently claim a credit for constructing energy-efficient homes, but this credit will expire for homes acquired after June 30, 2026. If you're in the market for a new home, look for energy-efficient options before this credit disappears.
Planning Opportunity: If these were projects you were already considering, completing them in 2025 (or by the applicable deadlines in 2026) will ensure you can still claim the associated credits.
Tony Powers, AIF®, CFP®, CRPS® Shareholder
Tony Powers, President of KerberRose Wealth Management, has more than 20 years of experience in the financial services industry. He specializes in helping private and public sector employers set-up and manage their employee retirement plans. Tony provides Fiduciary Services and Support, Plan Design Consultation, Plan Benchmarking and Financial Wellness.