Federal Energy Tax Credits Are Expiring—Here’s What to Act on Now and What Can Stay on Your Radar 1
You’ve probably been there, scrolling the news and watching federal tax credits for home energy upgrades and electric vehicle (EV) tax credits vanish faster than free samples at the farmers’ market. It’s led to some serious customer confusion.
At VCE, we get it. Keeping track of what’s out, what’s almost out, and what’s still in is not how you like to spend your free time.
Consider this your friendly cheat sheet for the upcoming federal tax credit expiration dates— a peek at the available home energy tax credits and all the gory tax details. We’re here to help you figure out if you need to crawl, walk, or RUN to make that energy-efficient purchase before the credits go buh-bye.
And, if your head starts spinning? That’s what the VCE Electric Advisor program is for—a free, no-pressure safety net for VCE customers – it’s like the “phone a friend” approach to energy efficiency questions!
Already Expired: EV Tax Credits Vanished September 30, 2025
First, the bad news. If you were banking on a federal tax credit for a new or used EV purchase, you’ve missed the (electric) boat.
- Tax Credits for New and Used EVs: These federal incentives were terminated as of September 30, 2025.
The Silver Lining (A Local Perk!): All is not lost for EV hopefuls! VCE customers still have access to the PG&E Pre-Owned EV Rebate, which offers incentives for purchasing or leasing a used EV. And in 2026, VCE is launching an EV Rebate that will stack with PG&E’s to provide a total rebate of $7,500, the same amount that used to be available as a federal tax credit, and you don’t even need to wait for tax season to get the benefit!
RUN! (Don’t Walk): The December 31, 2025 Deadline
This is the big one. Several of the most valuable home energy credits are set to expire at the end of the year. If you’re planning a major home upgrade, you have a solid window, but you need to start the planning and purchasing process now.
| Credit Name | The Deal | A Few Tips |
|---|---|---|
|
Energy Efficient Home Improvement Credit (aka 25C) |
Up to 30% tax credit for high-efficiency upgrades like heat pump water heaters, heat pump HVAC systems, and certain energy efficiency improvements. |
Don’t dawdle! These projects take time to plan and install. |
|
Residential Clean Energy Credit (aka 25D) |
Up to 30% tax credit for installing systems that generate clean power, like home battery storage and rooftop solar. Note: The federal tax credit isn’t earned just by buying the panels or having them installed; it’s earned when the system is “placed in service.” |
Check with your solar contractor to ensure that you will cross the finish line (including getting PG&E permission to operate) before the deadline.
|
Energy Efficient Home Improvement Credit (aka 25C)
The Deal
Up to 30% tax credit for high-efficiency upgrades like heat pump water heaters, heat pump HVAC systems, and certain energy efficiency improvements.
A Few Tips
Don’t dawdle! These projects take time to plan and install.
Residential Clean Energy Credit (aka 25D)
The Deal
Up to 30% tax credit for installing systems that generate clean power, like home battery storage and rooftop solar. Note: The federal tax credit isn’t earned just by buying the panels or having them installed; it’s earned when the system is “placed in service.”
A Few Tips
Check with your solar contractor to ensure that you will cross the finish line (including getting PG&E permission to operate) before the deadline.
Please note that there are specific criteria for the types of projects that are eligible for these tax credits. Consumer Reports and ENERGY STAR provide well-written summaries of the federal criteria with links to details on eligible products. Check with your contractor to be sure your project meets the eligibility requirements.
California Bonus Incentives! The state of California is on your side! Significant statewide incentives are still available for installing heat pump HVAC systems. Statewide incentives are also available for you and your contractor for heat pump water heaters.
These can be stacked with the federal tax credit (while it lasts!), making these upgrades a fantastic financial move.
Run! (Okay, Plan Prudently): The June 30, 2026 Deadline
You have a little more breathing room on this one, but it’s still smart to plan your move!
| Credit Name | The Deal | A Few Tips |
|---|---|---|
|
Alternative Fuel Vehicle Refueling Property Credit (aka 30C) |
A 30% tax credit (up to $1,000 per item) for installing EV charging equipment at home. |
This is the last major federal EV-related credit remaining. Make that charger purchase part of your home upgrade plan! |
Alternative Fuel Vehicle Refueling Property Credit (aka 30C)
The Deal
A 30% tax credit (up to $1,000 per item) for installing EV charging equipment at home.
A Few Tips
This is the last major federal EV-related credit remaining. Make that charger purchase part of your home upgrade plan!
The Silver Lining (Another Local Perk!): Just like with used EVs, PG&E also administers a rebate for home EV charging equipment that is available to VCE customers. Get the federal tax credit and a local rebate? Yes, please! VCE will be launching a program in 2026 for installing chargers in multi-family properties, and that can also be stacked with other incentives to make installing charging very affordable.
The Conclusion: Savings Are Waiting—But Not Forever!
Even without the enticing federal tax credits, making the switch to electric, energy-efficient appliances and home systems is a financially smart move. They also lower your utility bills, increase your home comfort, and make an impact on your community. And if you can avoid natural gas, you could see a huge improvement in indoor air quality, too.
But let’s be real: no one wants to miss out on significant savings.
That’s why we created the VCE Electric Advisor program, which is free for VCE residential customers. We aren’t selling you anything. Our trained Electric Advisors are here to provide you with a knowledgeable, unbiased expert. You can have no-stakes, no-pressure conversations to ask all your questions about these deadlines, available local rebates, and the best path for your home.
Don’t let the confusion delay your plans.
Ready to figure out your next steps without the sales pitch? Call a VCE Electric Advisor today at 855-699-8232 to discuss your energy-efficient home and transportation plans!
1 This information is for general educational purposes only and does not constitute tax advice. Please consult with a qualified tax professional or accountant for specific guidance.