Energy & Electric Vehicles 2026

Prior to 2026 there are tax credits available for those with clean & renewable energy, and certain electric vehicles thanks to the Inflation Reduction Act (IRA). However, there is no plans to further the credit as of January 1st, 2026.

Clean Vehicle Tax Credit

The Clean Vehicle Tax Credit is a federal incentive that helps lower the cost of purchasing an electric vehicle prior to September 30, 2025. It provides up to $7,500 for eligible new electric vehicles and $4,000 for eligible used electric vehicles. The credit was created to encourage individuals and businesses to transition to cleaner, more energy-efficient transportation options.

New Clean Vehicle Credit

New Clean Vehicle Credit (up to $7,500) - For brand-new EVs, plug-in hybrids, and fuel-cell vehicles.

You can receive:

$3,750 for meeting battery component rules.
$3,750 for meeting critical mineral sourcing rules.

Used Clean Vehicle Credit

Used Clean Vehicle Credit (up to $4,000) - For used EVs from a dealer.

You can receive:

30% of the sales price, capped at $4,000)

Who Qualifies?

To get the Credits - Both you and the vehicle must qualify.

Income requirements:

$300,000 (married filing jointly)
$225,000 (head of household)
$150,000 (single or married filing separately)

Vehicle requirements:

Final assembly must be in North America.
MSRP must be under certain limits.
Must have a battery capacity of at least 7 kWh.
Must be bought from a licensed dealer.
IRS Form 1540 Clean Vehicle Seller Report, must be filed within 3 days of purchase.

Clean Energy Tax Credit

The Clean Energy Tax Credit refers to a broad group of federal tax incentives designed to promote the use of cleaner, more energy efficient energy in homes and businesses.

Residential Clean Energy Credit

This credit lets homeowners claim 30% of the cost for installing renewable energy systems.

Such as:

Solar panels
Solar water heaters
Geothermal heat pumps
Small wind turbines
Battery storage (> 3 kWh)
Fuel cell systems

There is no dollar cap.

Energy Efficient Home Improvement
Credit

This credit helps homeowners cover energy-efficient improvements.

Examples:

Energy-efficient windows and doors
Insulation
Heat pumps & heat-pump water heaters
Central air conditioners
Home energy audits

It offers up to $3,200 per year, depending on the improvements.

Who Qualifies

Residential Clean Energy Credit - 30%

Who qualifies:

Homeowners who install qualifying renewable energy systems
The home must be located in the United States
Can be a primary residence, second home, or vacation property
Must own, not lease

Does NOT qualify:

Renters (unless you own the system).
Landlords (can't claim for rental-only properties).

Energy Efficient Home Improvement Credit -

Who qualifies:
Homeowners

Renters (for certain improvements you pay for)

Requirements:

The improvement must meet federal efficiency standards
Installed at your U.S. primary residence
Annual caps apply

Does NOT qualify:

New construction
Landlords improving rental properties