Nonprofit rushes as home electrification tax credits end

Energy Tax Credits Expiring: Rewiring America Initiates Campaign for Homeowners

Rewiring America, a nonprofit organization focusing on electrification, has initiated a national campaign to aid homeowners in availing of incentives and purchasing efficient appliances, batteries, and solar panels before the end of the year. This comes in response to the expiration of two residential federal energy tax credits slated for the close of this year.

The “Save on Better Appliances” campaign, happening throughout September and October, aims to provide homeowners with resources for understanding the tax credits, advice on installing new energy resources and appliances, and a tool for planning to simplify the process.

Phoenix Mayor Kate Gallego, who is also the chairperson of the Climate Mayors network, stated during the campaign’s announcement on Aug. 25, “We have a narrow window to get the word out. These clean energy tax credits have helped American families and businesses save money, and now is the time to take full advantage of them.”

Rewiring America’s Effort to Inform about Expiring Tax Credits

With the signing of the One Big Beautiful Bill Act in July by President Donald Trump, significant cuts have been made and the sunset of energy incentives under the Inflation Reduction Act has been hastened. With only a few months left to claim the residential credits, Rewiring America is making efforts to spread the word.

“The clock is ticking,” stated the Executive Director of the U.S. Climate Alliance, Casey Katims. “Our governors are committed to spreading the word on how consumers can lower their energy bills using these soon-to-expire tax credits.”

The 25D clean energy incentive offered homeowners a 30% tax credit for installing certain energy systems, inclusive of solar panels and batteries. The 25C incentive, on the other hand, provided credits for specific home energy efficiency improvements, like windows, doors, insulation, and HVAC systems. However, following the OBBBA, the 25C incentive now requires improvements to be in service by Dec. 31, 2025, and the 25D credit necessitates that the expenditures be done by the end of this year.

“These widely-used federal credits were intended to be available when American families needed them,” stated Ari Matusiak, the CEO of Rewiring America. “The decision by Congress to repeal them prematurely implies that households should act fast. We have the tools to aid homeowners ready to take action.”

“High energy bills are putting pressure on families throughout America, and they require practical solutions immediately,” said Rep. Kathy Castor, D-Fla. “I commend Rewiring America for assisting families in acting before these vital credits disappear.”

The nonprofit also announced its partnership with manufacturers, contractors, and lenders to offer discounts on heat pump packages in Colorado and Rhode Island, with plans to expand to other locations.

Furthermore, experts predict that heat pump adoption will continue to grow in popularity, even without federal incentives. Since 2021, heat pump installations have consistently outpaced gas furnace sales, a trend that the Rocky Mountain Institute predicts will persist as manufacturers take advantage of their products’ improved energy efficiency.

David Rames, Senior Product Manager at heat pump manufacturer Midea, said in August, “The biggest misconception with OBBBA is that it’s taking away from heat pumps. Despite repealing federal incentives, it’s nudging the industry to speed up a market shift already in progress: one focusing on affordability, ease of installation and readiness for retrofit.”