Federal Solar, EV Tax Credits Expire 2025, Affecting US Homeowners

President Donald Trump's recent budget bill, signed on July 4, has significantly shortened the duration of key clean energy tax credits, accelerating their expiration to later this year. Federal tax credits for electric vehicles, originally set to last until 2032, will now expire on September 30, 2025, with buyers needing to meet strict eligibility criteria to qualify for up to $7,500 on new EVs and $4,000 on used ones. This change is expected to reduce short-term demand for electric vehicles, although manufacturers plan to offer deep discounts and incentives to maintain sales momentum. Meanwhile, the 30% federal tax credit for residential solar energy installations will end on December 31, 2025, prompting a surge in installations as homeowners rush to qualify before the deadline. Programs supporting solar panel adoption, such as Solarize Virginia, are urging homeowners to act quickly, noting that installation timelines may require contracts to be signed soon to benefit from the tax credit. Overall, the expiration of these incentives threatens to slow clean energy adoption, potentially increasing pollution and straining the electric grid as renewable energy becomes less financially accessible.