Clean Energy Tax Breaks Are Going Away

If you follow political news, you likely have read that the White House and Congress, both controlled by Republicans, have scrapped federal tax breaks for installing/purchasing “clean energy” appliances and vehicles. Most federal tax breaks for solar panels, energy efficient windows and doors, and energy-saving appliances, such as heat pump HVAC systems and water heaters, will disappear after 12/31/25. For qualifying electric vehicles and hybrid plug-in electric, the deadline is even sooner, ending on 9/30/25. If you’ve been considering installing solar panels, or purchasing an electric vehicle, now is the time to do it if you want to receive a federal tax credit on your 2025 taxes. The tax credits can be worth thousands of dollars, so if you’re in the market for a new vehicle, and like the idea of switching to all electric (or even hybrid plug-in electric), or upgrading to a new electric automobile, NOW is the time to purchase. Consumer Reports has a list of qualifying vehicles. If you’re looking to install roof top solar panels, you should reach out to a reputable solar company immediately to get on their schedule. Two reputable companies in the desert are Hot Purple Energy and Renova Energy. Lead times for new windows and doors can be several weeks, so, again, talk with your installer now. The lead time for installing a heat pump AC/furnace or a heat pump water heater is shorter, but we do not recommend waiting until the last minute…in case local installers are overwhelmed with installs this fall.

Poolside Realty has first-hand experience with many of the clean energy products/systems affected by the Republican legislation. Please reach out if you’d like to ask us about our experiences with our all-electric car (a 2018 Chevrolet Bolt - LOVE it!) and a plug-in hybrid (2021 Toyota RAV-4, Love it also!), rooftop solar panels with battery storage (Hot Purple Energy), heat pump HVAC (Bosch), and heat pump water heater (Rheem).