The GOP bill guts clean energy tax credits. Here are deadlines to use them

The massive tax and spending bill that Republicans passed in Congress on Thursday phases out many of the clean energy credits and rebates from the 2022 Inflation Reduction Act.

The credits and rebates for individuals weren’t the only clean power cuts: Hard-line conservatives in the House told Politico their votes were swayed in part by promises from President Donald Trump to crack down on clean energy credits and large-scale projects for renewable energy such as solar and wind power.

Democrats and environmental groups have warned that the bill’s clampdown on clean energy could increase people’s power bills. Citing an analysis from think tank Energy Innovation, CNN reported that by 2035, Californians’ electric bills could be 11% higher thanks to the changes in this bill.

By contrast, China has made significant investments into clean energy in recent years, topping $940 billion in 2024. Clean energy made up 10% of China’s GDP that year.

• What does Trump’s tax bill mean for your money? Here are the biggest impacts for Californians

Trump, who has repeatedly called climate change a “hoax” and pulled the U.S. out of the Paris climate accords in his first term, is taking America down a different path. 

Here’s what’s going away and how long you have before it does.

Under the GOP bill, credits for electric vehicle purchases will no longer be available after Sept. 30 of this year.

Married couples filing jointly earning less than $300,000 or single filers earning less than $150,000 are entitled to up to $7,500 off a new electric vehicle. For a used EV, the credit is $4,000 for married couples filing jointly earning $150,000 or less, heads of households earning $112,000 or less, or single filers earning $75,000 or less. Because of a loophole in the legislation, you can find good deals on lease for a lot of EVs and plug-in hybrids that utilize the credit as well.

The end of this credit will particularly impact Californians. The state has the highest adoption rate of electric vehicles in America (6% of newly registered vehicles in the state between 2012 and 2022 were electric) and the best-selling new car in California has been the Tesla Model Y for several years. 

Many clean energy credits and rebates are now set to sunset after Dec. 31.

Here are some of the popular credits coming to an end:

• Up to $1,000 for electric chargers. People in certain rural or low-income areas can get up to $1,000 off chargers for electric vehicles.

• Up to $2,000 for heat pumps and heat pump water heaters. 

• 30% off the cost of installing battery storage systems, geothermal heating and rooftop solar. These credit amounts are uncapped. Rewiring America says average credits are worth $4,800 for battery storage, $7,200 for geothermal and $4,600 for solar. People in low-income areas may be eligible for additional credits on solar.

• Up to $1,200 for weatherization. That can include projects such as insulation and air sealing of doors and windows.

• Up to $600 for electrical panel upgrades.

• $150 off an energy audit.

Several rebates also wound up on the chopping block, all ending after Dec. 31. The Building Decarbonization Coalition maintains a list of rebates for which Californians are eligible at Switch Is On (www.switchison.org/ca). Like the tax credits, rebates may vary by your housing type (multifamily versus single family), income, filing status and other factors. 

• Up to $8,000 off heat pumps.

• Up to $2,500 off electrical wiring.

• Up to $840 off electric stoves, cooktops, ovens, ranges and clothes dryers.

• Up to $1,750 off water heaters.

• Up to $1,500 off HVAC.

You can use a calculator from Rewiring America to find out which federal credits, discounts and rebates you’re still eligible for, based on your ZIP code, utility provider, household income, tax filing status and household size.