Thinking About an EV or Home Energy Upgrade? Here’s Why You Might Want to Act Before 2026
At Blackbird Accounting, we love helping our clients save money—and not just during tax season. If you've been thinking about buying an electric vehicle or making your home more energy efficient, here's your friendly nudge: you might want to make your move before the end of 2025.
A new tax bill passed by the House in May proposes putting the brakes on some valuable clean energy tax credits. While it still needs Senate approval, it’s a good idea to get ahead of the potential changes now—before the window of opportunity closes.
🚗 EV Tax Credits: Still Here, But Maybe Not for Long
Right now, you can snag up to $7,500 in federal tax credits for a new electric vehicle, or up to $4,000 if you buy used. That’s not pocket change—and we’ve seen it make a real difference for our clients.
But the latest tax legislation could cut these credits short at the end of 2025. Add in proposed new registration fees ($250 annually for EVs, $100 for hybrids), and the sooner you buy, the better your bottom line might look.
Not all vehicles qualify, so check the IRS list before you buy—or reach out to us, and we’ll help you navigate the fine print.
🏠 Energy-Efficient Home Upgrades: Big Credits, But a Shorter Timeline
Thinking about swapping out that old furnace, upgrading windows, or installing a heat pump? There’s a generous federal credit for that—up to $3,200 a year. But under the proposed bill, those credits could go poof after 2025.
Here's what’s still available (for now):
• Up to $2,000 for qualified heat pumps, water heaters, and biomass stoves
• Up to $1,200 for insulation, energy-efficient windows and doors, and home energy audits
Heads-up: starting in 2025, you’ll need to include a Product Identification Number (PIN) from the manufacturer to claim these credits. So save those receipts and product labels!
🕒 Why You Shouldn’t Wait
At Blackbird Accounting, we’re all about proactive planning. And when it comes to tax credits, timing is everything. Making your purchase or completing upgrades by December 31, 2025 could mean thousands in savings that won’t be available later.
Your future self will thank you.
📋 What You Can Do Now
✅ If You’re Eyeing an EV:
Make sure your income and the vehicle qualify.
Choose between new or used based on your budget and the available credit.
Complete the purchase before the end of 2025.
✅ If You’re Improving Your Home:
Prioritize eligible upgrades like heat pumps, insulation, or energy-efficient windows.
Confirm product eligibility and get that PIN.
Plan the project timeline to finish before the 2025 deadline.
🐦 Need Help? Call in the Blackbirds.
This stuff can feel a little overwhelming—vehicle requirements, income limits, manufacturer rules—but that’s where we come in. At Blackbird Accounting, we’re our tax preparers are here to help you navigate all of it with confidence (and maybe even a little fun).
Let’s make sure you’re not leaving money on the table. Contact us to talk strategy, crunch the numbers, or simply ask your questions. We’re your partners in all things tax-smart.