Dive Brief:
- A pair of residential federal energy tax credits is slated to expire at the end of this year, and electrification nonprofit Rewiring America has launched a national campaign to help homeowners access the incentives and purchase efficient appliances, batteries and solar panels before the deadline.
- In September and October, the “Save on Better Appliances" campaign will offer homeowners resources to learn about the tax credits, guidance on installing new appliances and energy resources, and a planning tool to streamline the process.
- “We have a narrow window to get the word out,” Phoenix Mayor Kate Gallego, who chairs the Climate Mayors network, said in an Aug. 25 statement announcing the campaign. “These clean energy tax credits have helped American families and businesses save money, and now is the time to take full advantage of them.”
Dive Insight:
The One Big Beautiful Bill Act signed in July by President Donald Trump made significant cuts and accelerated the sunset of energy incentives contained in the Inflation Reduction Act. With just a few months left to claim the residential credits, Rewiring America wants to get the word out.
“The clock is ticking,” U.S. Climate Alliance Executive Director Casey Katims said in a statement. “Our governors are committed to spreading the word on how consumers can lower their energy bills through these expiring tax credits.”
The 25D clean energy incentive provided homeowners a 30% tax credit for installing certain energy systems, including solar panels and batteries. The 25C incentive provided credits for certain home energy efficiency improvements, including windows, doors, insulation and HVAC systems. Originally planned to be available for some years, following OBBBA the 25C incentive requires improvements to be placed in service by Dec. 31, 2025, and the 25D credit requires that the expenditures be made by the end of the year.
"These popular federal credits were designed to be available when American families needed them,” Rewiring America CEO Ari Matusiak said. “Congress’s decision to repeal them prematurely means households should act fast. ... For homeowners ready to act, we have the tools to help.”
High energy bills “are squeezing families across America, and they need practical solutions now,” Rep. Kathy Castor, D-Fla. said in a statement. “I applaud Rewiring America for helping families act before these critical credits vanish.”
The nonprofit said it has also partnered with manufacturers, contractors, and lenders to offer discounts on heat pump packages in Rhode Island and Colorado, “with more locations to come.”
Even without federal incentives, though, experts say heat pump adoption will remain popular. Heat pump installations have been outselling gas furnaces consistently since 2021, a trend the Rocky Mountain Institute expects to continue as manufacturers capitalize on the improved energy efficiency of their products.
“The biggest misconception with OBBBA is that it’s pulling the rug out from under heat pumps,” David Rames, senior product manager at heat pump manufacturer Midea, told Facilities Dive in August. “While it’s repealing federal incentives ... it’s nudging the industry to accelerate a market shift that was already underway: one focused on affordability, ease of installation and retrofit readiness.”
