U.S. Bill to Sunset Clean Energy Tax Credits for your Home

Congress is reversing course on clean energy tax credits for homeowners. These credits, originally meant to incentivize efficient upgrades through 2032, are now set to sunset at the end of this year.

The energy-efficient improvement tax credit will expire for any service after December 31, 2025. This includes things like window and door replacement, insulation, and HVAC systems. If you’re a homeowner hoping to take advantage of the program, you’ll have to act fast.

Energy.gov website

EnergyStar.gov website

For Lincoln residents, tax credits can be combined with rebates offered by LES when improvements are installed with participating contractors.

Lincoln Electric System website

Commercial Properties will also be impacted. There is currently a tax deduction (179D) for business owners making energy efficient upgrades that reduce consumption by 25%. These incentives will no longer be available for properties beginning construction after June 30, 2026.

Energy.gov website for commercial

 

PAL Board