EV and Clean Energy Tax Credits Are Ending: What to Know Before Year-End
For years, federal tax credits have helped individuals and businesses adopt cleaner energy strategies. From electric vehicles to high-efficiency HVAC upgrades, these incentives have played a major role in supporting the transition to more sustainable technology.
But as of September 2025, things are about to change quickly.
With the passage of the One Big Beautiful Bill Act (OBBBA), many of the most popular clean energy tax credits are now facing hard expiration dates. If your business or household is considering an energy-efficient purchase or upgrade, the next four months may be your final opportunity to benefit from key incentives.
EV Credits Expiring After September 30, 2025
The most urgent deadlines relate to electric and hybrid vehicles. The following credits will terminate for purchases made after September 30, 2025:
- Section 30D: The Clean Vehicle Credit for new electric vehicles, previously offering up to $7,500
- Section 25E: The Credit for Previously Owned Clean Vehicles, worth up to $4,000
- Section 45W: The Qualified Commercial Clean Vehicle Credit for business fleet purchases
- Section 6426(k): The Sustainable Aviation Fuel Credit
If you are planning to purchase or lease an EV, either personally or for your business, the vehicle must be acquired on or before September 30, 2025 to qualify for any of these credits.
Other Energy Credits Set to Expire by Year-End or in 2026
Several other energy efficiency incentives are also set to expire soon. Here is a breakdown of the most widely used credits and their deadlines:
- Section 25C: Energy-Efficient Home Improvement Credit
Expires for improvements made after December 31, 2025 - Section 25D: Residential Clean Energy Credit (solar, wind, geothermal)
Ends for expenditures made after December 31, 2025 - Section 179D: Deduction for Energy-Efficient Commercial Buildings
Ends for projects that begin construction after June 30, 2026 - Section 30C: Alternative Fuel Vehicle Refueling Property Credit
Terminates after June 30, 2026 - Section 45L: New Energy-Efficient Home Credit
Ends for eligible homes sold or leased after June 30, 2026 - Section 45V: Clean Hydrogen Production Credit
Expires after January 1, 2028
In addition, the cost recovery provision under Section 168(e)(3)(B)(vi) for certain energy property and clean energy facilities will be eliminated. The deadline is December 31, 2025, for energy property and immediately for qualified clean energy facilities.
What This Means for Business Owners and Homeowners
These changes significantly impact planning for capital improvements and tax strategy. For business owners, the phase-out of the commercial clean vehicle credit and energy-efficient building deductions can affect cost projections and financing. For homeowners, the loss of credits for HVAC systems, insulation, solar panels, and EV chargers may make energy upgrades less financially attractive moving forward.
The market may also respond to this final window of eligibility with increased demand and tighter supply, especially for vehicles and energy-efficient materials.
Next Steps
Now is the time to act if you want to benefit from any of the soon-to-expire credits. We recommend:
- Verifying eligibility for any planned purchases or installations
- Reviewing timelines to ensure project completion before the applicable deadline
- Coordinating with your tax professional to confirm documentation and election requirements
These credits have delivered meaningful savings for many, but most will sunset within the next 4 to 16 months. Contact your ShindelRock team about acting before year-end to preserve valuable benefits that won’t be available in 2026 and beyond.