Tax Day 2025: Last Call for Federal Home Energy Credits?

PENNSYLVANIA – This Tax Day, it’s a good time to highlight the important federal tax credits that are reducing home energy bills for thousands of Pennsylvania families and making electric vehicles more affordable. 

Key provisions of the Inflation Reduction Act of 2022 (IRA) allow eligible taxpayers to receive federal tax credits for making energy efficiency and weatherization improvements that lower the cost of heating their homes, installing rooftop solar panels that generate clean, affordable energy, or purchasing an electric vehicle.

These tax credits are delivering significant savings to families across the state, in both Democratic and Republican congressional districts. In 2024 (2023 tax year filings), Pennsylvania residents claimed $267.8 million in federal tax credits for residential energy projects and electric vehicle purchases:

Home Energy Credits

• 158,550 Pennsylvania households received the energy efficient home improvement tax credit, the residential clean energy credit , or both 
• The energy efficient home improvement tax credit offset nearly $118 million in eligible expenses for home energy efficiency and weatherization projects. 
• The residential clean energy credit (rooftop solar, heat pumps, etc), brought an additional $149 million in direct tax relief to Pennsylvania families. 

Clean Vehicle Credits

• 10,680 Pennsylvania taxpayers received the clean vehicle tax credit, which lowers the cost of purchasing an electric vehicle. This credit delivered nearly $72 million in direct savings to Pennsylvania EV buyers, with the average credit knocking more than $6,700 off the price of a new EV.

All of these federal tax credits are at serious risk of being gutted by the Trump Administration.

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