You no doubt have clients contemplating going green by purchasing an electric vehicle (EV) or investing in energy-efficient home improvements, there's critical news you need to convey to them. With the passage of the One Big Beautiful Bill, key energy tax credits have been significantly curtailed. Let's break down what this means for you and your clients.
EV Tax Credits: Act Before It's Too Late!
Clients thinking about buying an electric vehicle and cashing in on valuable tax credits? You might suggest they want to accelerate their plans. The One Big Beautiful Bill mandates that the lucrative tax credits for EVs will expire on September 30, 2025.
- New and Used EVs: Whether they are eyeing a brand new model or considering a previously owned vehicle, these tax credits apply to both! Before time runs out, they could save $7,500 on a new EV and $4,000 on a used one.
Home Energy Credits: Race Against the Clock
The Bill doesn't just affect electric vehicles; it also impacts home energy credits, cutting short some previously generous incentives.
- Energy-Efficient Improvements: If a client’s home needs a dose of energy efficiency, a 30% credit on home energy improvements could lighten the financial load. However, it's essential to they act fast as this too will be curtailed.
- Solar Energy Installations: The good news? While there's a $1,200 cap on credits for general energy-efficient improvements, solar energy installations bear no such cap. Yet, the urgency remains—as with other improvements, installations must be completed by December 31, 2025, to qualify.
The Timeline: Why Immediate Action Matters
To qualify for these credits, all installations or improvements must be completed by December 31, 2025. Time is of the essence, and preparing early could mean substantial savings.