Homeowners looking to make energy-efficient upgrades or invest in renewable energy systems have just a few months left to take advantage of two powerful federal tax incentives: the Efficient Home Improvement Credit and the Residential Clean Energy Credit . Both are set to expire on Dec. 31, 2025, under the recently enacted 2025 Act (often referred to as the One Big Beautiful Bill or OBBB).
These credits, originally expanded under the Inflation Reduction Act of 2022, were designed to encourage homeowners to reduce their carbon footprint and lower energy bills. But with the 2025 Act cutting them short—seven years earlier than planned—time is of the essence.
Energy Efficient Home Improvement Credit
This credit allows homeowners to claim 30% of the cost of qualifying energy-efficien