Which clean energy tax credits expire or change in 2026 and what are the key differences?
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Executive summary
Three major household and business clean-energy tax incentives—the Energy Efficient Home Improvement Credit (EEHIC/section 25C/25D variations), the Residential Clean Energy Credit (RCEC/section 25D), and a suite of commercial clean-energy credits including the Investment Tax Credit (ITC/section 48E) and Production Tax Credit (PTC/section 45Y)—were sharply accelerated or otherwise altered by the One Big Beautiful Bill Act (OBBBA), with many homeowner-targeted credits ending for expenditures after December 31, 2025 and several program deadlines collapsing into mid‑2026 for place‑in‑service or construction‑start rules for business credits (IRS, OBBBA guidance, and industry summaries) [1][2][3].
1. Which homeowner credits expire or change in 2026 — the short list and deadlines
The headline: the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit become effectively unavailable for most new household expenditures after December 31, 2025; numerous outlets and the IRS FAQs treat 2025 as the cutoff for expenditures or property placed in service, while some trade groups note limited carve‑outs for homes sold or acquired through mid‑2026 or other narrow timing rules (CNBC, ENERGY STAR, CPA Practice Advisor, NAHB, IRS) [1][4][5][6][2]. Industry and consumer guides uniformly advise homeowners to have installations completed by year‑end 2025 to claim the credits on 2025 returns filed in 2026; the OBBBA accelerated previously longer windows created by the Inflation Reduction Act [1][5][7].
2. The EV charger and alternative‑fuel refueling property credit — mid‑2026 cliff
Separate from solar/EEHIC timing, the Alternative Fuel Vehicle Refueling Property Credit (which includes home EV chargers) and several infrastructure‑type credits require the property be placed in service by June 30, 2026 to remain eligible, according to multiple consumer and nonprofit guides (AARP, Clean Energy Resource Teams, CBIA) [8][9][10]. This creates a distinct mid‑2026 deadline that differs from the December 31, 2025 cutoff for many residential equipment credits [9][8].
3. Commercial solar, wind and other large projects — construction‑start windows and 2027 phase‑outs
For business‑scale ITC and PTC benefits, OBBBA narrows who can claim full credits by introducing a construction‑start safe harbor: projects that begin construction by July 4, 2026 may still qualify and often have up to four years to be placed in service, while facilities placed in service after December 31, 2027 generally lose eligibility unless they meet the safe‑harbor dates (PKF O’Connor Davies, FOOL Wealth, Montgomery County Green Bank) [3][7][11]. That contrasts with consumer credits that mostly require expenditures or installation by end of 2025, revealing different timing mechanics for residential versus utility‑scale projects [5][3].
4. Key differences in the changes — timing, scope, and new compliance rules
The changes are not uniform: homeowner credits are curtailed by expenditure/installation dates (end of 2025) and in some cases acquisition dates, EV‑charger credits end mid‑2026, while commercial credits rely on construction‑start safe‑harbors extending into 2026 with final in‑service cutoffs in 2027; moreover the OBBBA layered on Foreign Entities of Concern (FEOC) rules and other eligibility and reporting changes that take effect in 2026, complicating qualification beyond just calendar deadlines [5][11][12]. The practical effect: homeowners must finish projects sooner to claim credits, developers must document construction starts to preserve credits, and cross‑border supply rules create new compliance risks [1][3][12].
5. Competing framings, industry reaction and hidden agendas
Installers, homebuilders and solar advocates frame the change as an abrupt market shock and run “claim‑before‑2026” campaigns; tax advisers emphasize technical traps (installation vs. expenditure timing, binding contracts, registration deadlines) that could deny credits even for projects started in 2025 (CPA Practice Advisor, IRS FAQs, CBIA) [5][2][10]. Conversely, proponents of OBBBA argue it reins in long‑running subsidies, but the law’s rapid deadlines also concentrate economic benefits for firms able to accelerate work and for tax planners who can monetize credits — an implicit advantage to larger players [12][7]. Treasury guidance promised in 2026 on FEOC and other rules will determine how much of the market disruption is temporary versus permanent [12].
6. Practical takeaway and next steps for stakeholders
Time is the key variable: homeowners should aim to have qualifying equipment installed and expenditures completed by December 31, 2025 to preserve EEHIC and RCEC claims, EV‑charger and some other property must be placed in service by June 30, 2026, and developers of utility‑scale projects must document construction starts by early July 2026 to use the multi‑year safe harbor — all while monitoring Treasury/IRS guidance on FEOC and reporting changes that take effect in 2026 [1][9][3][2]. Sources consulted include consumer reporting (CNBC, AARP), federal guidance (IRS), industry analyses (NAHB, PKF, CPA Practice Advisor) and clean‑energy nonprofits (Clean Energy Resource Teams) [1][8][2][6][3][9].