Federal Tax Credits for Energy-Saving Upgrades Expire Soon

Federal tax credits that help homeowners save on energy-efficient upgrades are set to expire soon, prompting a push to take advantage of the incentives before the deadlines.

Rewiring America has launched its “Save on Better Appliances” campaign to help families make informed choices. President and CEO Ari Matusiak says the expiring credits cover a wide range of improvements, including electric vehicles, heat pumps, water heaters, rooftop solar, battery backups, and insulation.

“These federal tax credits can really help lower your month-over-month energy costs,” Matusiak explained. “But the credits are going away. EV credits expire at the end of this month, and the rest will be gone by year’s end.”

Even without the incentives, Matusiak stressed that the technology behind modern electric appliances provides lasting savings. A heat pump in the Palm Springs area, for example, can save a few hundred dollars annually on energy bills. Pairing rooftop solar with a battery backup can bring savings of around $1,800 per year.

Homeowners may also be eligible for state, local, and utility incentives that can be combined with the federal credits to reduce upfront costs further. To make the process easier, Rewiring America created an online hub where families can check eligibility, find contractors, and connect with nonprofit “electric coaches” for guidance.

Residents can visit rewiringamerica.org/save to explore available programs and plan their upgrades before time runs out.

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