Take Advantage of Energy Efficiency Tax Credits While They’re Still Available!
Take Advantage of Energy Efficiency Tax Credits While They’re Still Available!
by David Jaeger,
Project Manager
Sierra Region
Several key federal clean energy tax credits created under the Inflation Reduction Act are set to expire soon following the passage of the One Big Beautiful Bill Act. Homeowners can still claim credits for heat pumps, weatherization, solar, battery storage, geothermal systems, and EV chargers if projects are completed by their respective deadlines in late 2025 or mid-2026. Many of these incentives can be combined with Northern Rural Energy Network (NREN) rebates, making now the best time to act before the funding opportunities end.
Due to the passage of the One Big Beautiful Bill Act earlier this year, the clean energy tax credits and funding programs provided by the Inflation Reduction Act are set to expire in the coming months. These changes impact funding opportunities for residents served by NREN. But which tax credits are expiring first, and when? What kinds of projects should be prioritized to take advantage of these financial incentives while you still can, and which can be stacked with NREN residential rebates? Below is a list of residential tax credits, in order of expiration, that can still be accessed:
- Energy Efficient Home Improvement Tax Credit (25C)
- Heat Pump HVAC System: Tax-paying households are eligible for up to a $2,000 credit for the installation of a qualified heat pump. Purchase and installation must be completed by December 31, 2025. Can be stacked with NREN rebates!
- Heat Pump Water Heater: Tax-paying households are eligible for up to a $2,000 credit for the installation of a qualified heat pump water heater. Purchase and installation must be completed by December 31, 2025. Can be stacked with NREN Rebates!
- Weatherization/Insulation: Tax-paying households are eligible for up to a $1,200 credit for weatherizing their homes. Weatherization upgrades can improve home comfort and energy efficiency. Measures included in this credit include insulation and air sealing, as well as qualifying windows, skylights, and exterior doors. Purchase and installation must be completed by December 31, 2025. Can be stacked with NREN rebates!
- Home Energy Audit: Tax-paying households are eligible for up to a $150 credit for a home energy audit. The audit must be completed by December 31, 2025.
- Residential Clean Energy Tax Credit (25D)
- Rooftop Solar Installation: Tax-paying households are eligible to have 30% of qualifying costs of purchasing and installing solar panels covered by this credit, with no limit. Solar panels must be installed and ready to be connected to the electric grid by December 31, 2025.
- Battery Storage Installation: Tax-paying households are eligible to have 30% of qualifying costs of purchasing and installing battery storage covered by this credit, with no limit. Projects must be completed by December 31, 2025.
- Geothermal Heating Installation: Tax-paying households are eligible to have 30% of qualifying costs of purchasing and installing geothermal heat pumps covered by this credit, with no limit. Projects must be completed by December 31, 2025.
- EV Charger Tax Credit (30C): Tax-paying households are eligible for 30% of the costs covered, up to a $1,000 credit, for the installation of a qualified EV charger. Equipment must be installed in a population census tract that is a low-income community or a non-urban area. For qualified census tract information, see this page. Projects must be completed by June 30, 2026.
If your household has been thinking about pursuing one of the above projects at your home, you should act soon to take advantage of these tax credits. You can also stack these tax credits with NREN rebates to optimize savings on certain energy efficiency projects, including heat pumps, heat pump water heaters, and some insulation measures. Please reach out to Info@NorthernREN.org if you have any questions!
