The Inflation Reduction Act of 2022 created an ambitious landscape of clean energy tax credits. OBBBA (P.L. 119-21, signed July 4, 2025) terminated most of the consumer-facing credits with hard cutoff dates that have already passed. If you are looking at claiming a solar credit, home energy credit, or EV credit for tax year 2026 - understand that most of these credits no longer exist for new purchases or installations made in 2026. Here is what was terminated, what survived, and what the remaining opportunities are.
Bottom Line - 2026 Status
§30D New EV Credit ($7,500): Terminated. Vehicle must have been acquired by September 30, 2025.
§25E Used EV Credit ($4,000): Terminated. Vehicle must have been acquired by September 30, 2025.
§25C Home Energy Improvement Credit: Terminated. Property must have been placed in service by December 31, 2025.
§25D Residential Solar/Clean Energy Credit: Terminated. Expenditure must have been made (installation complete) by December 31, 2025.
§48 Commercial Investment Tax Credit: Still available for qualifying projects that began construction by approximately July 4, 2026 (12 months after OBBBA signing) and are placed in service by December 31, 2027.
What OBBBA Did to Consumer Energy Credits
§30D Clean Vehicle Credit - Terminated after September 30, 2025. The $7,500 new clean vehicle credit and the $4,000 used vehicle credit (§25E) are no longer available for vehicles acquired after September 30, 2025. If you purchased a qualifying EV before that date and have not yet filed your return, you may still claim the credit for the year of purchase. New EV purchases in 2026 do not qualify. The point-of-sale transfer option also closed when dealer portal registration ended September 30, 2025.
§25C Energy Efficient Home Improvement Credit - Terminated after December 31, 2025. The 30% credit (up to $3,200 annual cap) for heat pumps, insulation, windows, doors, and other home energy improvements is no longer available for property placed in service after December 31, 2025. Work completed in 2025 that was placed in service in 2025 may still be claimed on the 2025 return. Work completed or installed in 2026 does not qualify.
§25D Residential Solar / Clean Energy Credit - Terminated after December 31, 2025. The 30% residential solar panel, solar water heater, geothermal heat pump, wind turbine, fuel cell, and battery storage credit is terminated for expenditures made (installations completed) after December 31, 2025. If solar panels were installed and fully operational in 2025, the credit may be claimed on the 2025 return. Installations completed in 2026 do not qualify even if the contract was signed or deposits paid earlier.
What Still Exists in 2026
§48 Commercial Investment Tax Credit - Still alive with a construction start deadline. The commercial ITC for solar, wind, geothermal, fuel cell, battery storage, and other qualifying energy property placed in a trade or business remains available for projects whose construction began within 12 months of OBBBA's enactment (by approximately July 4, 2026) and that are placed in service by December 31, 2027. The base credit rate is 6%, increased to 30% for projects meeting prevailing wage and apprenticeship requirements.
§45X Advanced Manufacturing Production Credit - Largely intact. The credit for domestic manufacturing of solar panels, wind components, batteries, and critical minerals continues with modifications. Wind components face a phase-out after 2027 but other components remain. New foreign entity of concern (FEOC) restrictions apply.
Nuclear, geothermal, battery storage, and carbon capture - Extended or preserved. Several clean energy technologies favored in the new policy environment receive extended or new credits. Nuclear power received a new 10% bonus credit. Geothermal projects beginning construction after 2025 are newly eligible for a 30% ITC without prevailing wage/apprenticeship requirements through 2035. Battery storage and carbon capture face phase-outs but with later timelines than wind and solar.
Claiming Credits for 2025 Tax Year Qualifying Property
If you completed qualifying property before the cutoff dates and have not yet filed your 2025 return (or filed an extension), you may still claim the following for 2025:
| Credit | Cutoff for Qualifying | Claim On |
|---|
| §30D New EV | Vehicle acquired by September 30, 2025 | 2025 Form 1040, Form 8936 |
| §25E Used EV | Vehicle acquired by September 30, 2025 | 2025 Form 1040, Form 8936 |
| §25C Home Energy | Property placed in service by December 31, 2025 | 2025 Form 1040, Form 5695 |
| §25D Residential Solar | Installation completed by December 31, 2025 | 2025 Form 1040, Form 5695 |
| §30C EV Charger | Property placed in service by June 30, 2026 | 2025 or 2026 Form 1040, Form 8911 |
The §30C alternative fuel vehicle refueling property credit (EV chargers) has a longer runway - property placed in service by June 30, 2026 still qualifies. This is the one residential-adjacent energy credit that remains available for early 2026 installations.
What This Means for Prior-Year Returns and Audits
Taxpayers who claimed energy credits for tax years 2022, 2023, and 2024 are not affected by OBBBA - those credits were valid law when claimed. OBBBA does not retroactively disqualify prior credits. If you claimed a §25D solar credit for a 2023 installation or a §30D EV credit for a 2024 vehicle purchase, those credits stand.
Authority: OBBBA P.L. 119-21 (One Big Beautiful Bill Act, signed July 4, 2025 - modified and terminated numerous IRA clean energy credits); IRC §30D (clean vehicle credit - terminated for vehicles acquired after September 30, 2025 per OBBBA); IRC §25E (used vehicle credit - same September 30, 2025 termination); IRC §25C (energy efficient home improvement credit - terminated for property placed in service after December 31, 2025 per OBBBA); IRC §25D (residential clean energy credit - terminated for expenditures/installations completed after December 31, 2025 per OBBBA); IRC §30C (alternative fuel vehicle refueling property - terminated for property placed in service after June 30, 2026 per OBBBA); IRC §48 (commercial investment tax credit - still available for projects beginning construction within 12 months of OBBBA enactment, placed in service by December 31, 2027; geothermal extended to 2035); IRC §45X (advanced manufacturing production credit - largely intact with FEOC restrictions); IRS FAQs for modification of §§25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under OBBBA (IR-2025-86); IRS OBBBA provisions page at IRS.gov/newsroom/one-big-beautiful-bill-provisions.