Energy Credits - 2025 Tax Returns
A word of caution: All energy credits are non-refundable. Energy credits offset tax liability. The benefit of an energy credit is limited by your federal tax liability.
Good News! The energy efficient home improvement credit increased to up to 30% of the cost of certain qualified energy efficient improvements, a maximum of $2,000 per year for heat pumps, biomass stoves, biomass boilers.
Solar Energy: The solar energy credit increased to 30% if you purchase residential energy efficient property. Examples of qualifying property: solar panels, solar water heaters. Solar energy credits are greater than all other energy efficient home improvement credits.
EV Electric Vehicle Credits: Eliminated under the Big Beautiful Bill, the credit is applcable for certain 2025 purchases made on or before September 30, 2025.
BEWARE OF SCAMS! From big box stores to the local roofer, clients are sold items with claims that the client will get all of their money back when they file their taxes. This is absolutely not true! Always ask your CPA before you buy.
Myra B. Carlisle, CPA
Myra Carlisle & Company PC
2107 Martin St S Ste 100
Pell City, Alabama 35128
205-884-4829 (Text or Voice)
This written information cannot be used for the purposes of avoiding penalties that may be imposed by any federal/state/local tax authority.
Tax Topics
2025 Mileage Rates & 2026 Mileage Rates
Mileage Rates