Clean Energy Tax Credits Are Ending — What You Need to Know
If you’re a San Francisco or Bay Area homeowner or buyer, here’s an important update:
The recent Republican tax and spending bill signed on July 2, 2025 cuts short all major federal clean energy tax credits—including incentives for electric vehicles, solar panels, battery storage, and energy-efficient home upgrades.
These programs were originally intended to run through 2032 under the Inflation Reduction Act, but under the new law, they will now expire in 2025.
For California homeowners—who’ve led the nation in clean energy adoption—this represents a serious loss of financial support. If you’ve been considering upgrades or a new EV, now is the time to act.
Many older homes in San Francisco could benefit from updates to meet today’s energy standards. Right now, the federal government offers:
30% back (up to $1,200/year) on heat pumps, insulation, windows, efficient HVAC, and more
30% back with no cap for solar panels, battery storage, and geothermal systems
✅ No income cap applies—these credits are available to all homeowners regardless of income level
Under the new law:
These credits will fully expire on December 31, 2025
💡 Pro tip: You can still stack these federal credits with California and PG&E rebates for additional savings. See links below.
California leads the country in EV adoption—but federal EV tax credits are on a countdown.
What to know:
$7,500 federal tax credit for new EVs, $4,000 for used
Income caps apply to purchases: $150K (single) / $300K (joint)
Leasing can bypass the income cap: The dealer claims the credit and typically applies it as a discount
EVs must meet U.S. assembly and battery sourcing rules (doesn't apply to leased cars)
Point-of-sale rebates at dealerships end September 30, 2025
💡 Considering an EV? This is also the right time to install a Level 2 charger at home—you can still benefit from local rebates through PG&E.
Schedule home energy upgrades now—solar, batteries, insulation, HVAC, and windows
Explore EV options, especially leases that let you benefit from the full tax credit
Combine local and federal programs for maximum savings
Consult your CPA or tax advisor to ensure you qualify and file correctly
These programs apply broadly and are not income-restricted:
PG&E Energy Rebates (insulation, smart thermostats, HVAC):
California Solar + Battery Rebates (Self-Generation Incentive Program)
PG&E EV Charger Rebate (50-100% of the purchase price of charging equipment depending on income)
Drive Clean California (EV info and rebate tools)
Bottom Line: Federal Support Is Ending — And It’s Unlikely to Return Anytime Soon
These tax credits were created to reward clean energy choices—but now they’re being cut short years ahead of schedule. If you’ve been waiting to go solar, upgrade your home, or buy or lease an EV, this is the time to act before the incentives disappear.
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