ECONOMIC CENTS: Disappearing Green Energy Credits
A number of clean-energy credits are about to expire. If you've thought a making green purchases, here's what you need to know about deadlines and available credits.
By Bruce Saller
COLUMNIST
Most of the green energy credits from the Inflation Reduction Act will end early due to the recent tax bill. Here is a summary of the changes.
Electric Vehicles (EVs) and Chargers
The new and used EV tax credit expires September 30, 2025. The new car credit of up to $7,500 is available on the cars listed here.
To be eligible, your federal adjusted gross income must be less than $300,000 for those who are married and filing jointly, $225,000 for heads of households, and $150,000 for other filers.
The rules pertaining to leased EVs are less restrictive, so contact the dealer if you are interested in leasing a new EV which does not qualify for the credit.
The used EV tax credit of up to $4,000 is available on the cars listed here.
To be eligible, your federal adjusted gross income must be less than $150,000 for those who are married filing jointly, $112,500 for heads of households, and $75,000 for other filers.
You can transfer the credit to the dealer for both new and used cars, which will lower the purchase price of the car.
The EV Charger rebate expires June 30, 2026. The rebate is 30% of the cost, up to a maximum rebate of $1,000. The rebate is only available if your home is in a low-income or nonurban census tract (instructions here.) People who live in or near Fredericksburg, Stafford Courthouse or Aquia are not eligible.
Residential Clean Energy Credit
This credit expires December 31, 2025 and covers 30% of the cost of installing solar panels, solar hot water heater, geothermal heat pump, fuel cells and battery storage.
There are no income or maximum credit limitations. Any unused credit cannot be rolled into the next tax year.
Energy Efficient Home Improvement Credit
This credit expires December 31, 2025 and covers 30% of the cost of qualified energy efficiency improvements up to a yearly maximum of:
$1,200 for energy efficiency improvements with individual limits (exterior doors - $250 per door, $500 total; exterior windows and skylights - $600; home energy audits - $150; insulation - $1,200; central air conditioners, gas/oil water heaters, furnaces - $600)
$2,000 per year for qualified heat pumps, water heaters, biomass stoves or biomass boilers.
Any unused credit cannot be rolled into the next tax year.
Virginia Home Electrification and Appliances Rebate Program
The Federal program was not affected by the tax bill, but Virginia still has not set up the state program required to implement the funding which could provide funding for heat pumps, heat pump hot water heaters, heat pump dryers and other electrical appliances and wiring upgrades. The status of the Virginia project can be viewed here.
Hopefully you will be able to take advantage of some of these credits before they expire.
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