InSight

Repeal of Clean Energy Tax Credits

Financial Planning Dentist

The “Big Beautiful Bill” (OBBBA) rolls back several clean energy tax credits originally created under the Inflation Reduction Act of 2022. These changes could directly affect individuals and families planning to invest in electric vehicles, home energy efficiency, or renewable energy systems.

Clean Vehicle Credits End in 2025

  • Up to $7,500 for new electric vehicles (EVs)
  • Up to $4,000 for used EVs

Sections 70501 and 70502 of OBBBA eliminate these credits for vehicles purchased after September 30, 2025.

Planning consideration: Boulder has one of the highest EV adoption rates in Colorado, with many residents driving Teslas, Rivians, and Chevy Bolts. If you’re considering a purchase, doing so before the deadline could save thousands.

Alternative Fuel Refueling Property Credit Ends in 2026

  • Up to $1,000 for installing EV charging equipment at a primary residence

Section 70504 eliminates this credit for charging stations installed after June 30, 2026.

Planning consideration: Boulder homeowners looking to add home chargers should complete installations before mid-2026 to take advantage of this credit.

Energy Efficient Home Improvement Credit Ends in 2025

  • Up to $1,200 for upgrades like windows, doors, insulation, HVAC systems, and energy audits

Section 70505 ends this credit for property placed in service after December 31, 2025.

Planning consideration: Boulder’s older housing stock, combined with rising energy costs, makes this credit especially valuable. Homeowners considering insulation or efficiency upgrades should act before the deadline.

Residential Clean Energy Credit Ends in 2025

  • Up to 30% of installation costs for solar panels, geothermal heat pumps, wind power, or fuel cells

Section 70506 repeals this credit for expenditures made after December 31, 2025, regardless of when the project is completed.

Planning consideration: With Boulder’s 300+ days of sunshine and strong local demand for rooftop solar, this repeal could significantly change the return on investment for solar projects. Families and businesses considering solar installations should prioritize projects before the end of 2025.

The Bottom Line

Several popular clean energy credits are set to expire much earlier than originally planned. For Boulder families and businesses, that means the window to claim meaningful incentives for EVs, solar panels, and energy-efficient home improvements is closing fast.

If you’re planning any of these purchases or upgrades, acting before the new deadlines could save you thousands in taxes and accelerate your long-term energy savings.

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