As Michigan awards Solar for Savings grants, clock is ticking to claim federal solar and EV tax credits wiped out by Trump and his MAGA allies

Lansing, Mich. – Among the many devastating impacts of the federal reconciliation bill passed by the U.S. Congress and signed into law by President Trump on July 4, the repeal of key federal tax credits for Michigan families who want  to make energy efficiency upgrades, buy an electric vehicle, or install solar panels on their roof to generate clean, renewable energy will cost Michiganders millions, thanks to the president’s MAGA allies, including U.S. Reps. John James and Tom Barrett. Both Michigan Republican lawmakers voted to repeal the tax credits in order to fund even more tax cuts for billionaires.

In the 2023 tax year alone, nearly 8,000 households in Michigan claimed over $50 million from the $7,500 federal tax credit for EVs ($4,000 for used EVs), while 117,310 households claimed more than $134 million from the 30% residential clean energy credit and the home energy efficiency credit, an average credit of $1,143 per household. Those savings will no longer be available to Michigan taxpayers after the end of this year.

To be eligible for the EV credit, you must purchase and take delivery of the qualifying vehicle on or before September 30, 2025. If you’re considering installing residential clean energy systems like solar panels, geothermal heat pumps or wind turbines, they must be installed and commissioned before December 31, 2025, to qualify for the 30% credit.

On a positive note for Michigan’s clean energy future, the Michigan Department of Environment, Great Lakes and Energy (EGLE) last week announced the first round of grant recipients through the state’s Solar for Savings program, which is funded with $156 million in federal resources approved during the Biden Administration. Solar for Savings is the first in a series of MI Healthy Climate Challenge (MHC Challenge) grant competitions to drive clean energy deployment and unlock additional investment across Michigan.

Two more rounds of Solar for Savings grants will be awarded by EGLE to eligible property owners, as well as public and non-profit entities such as tribes, state and local governments, non-profit organizations, municipal and cooperative utilities, and educational institutions (e.g., K-12 schools, colleges, and universities). Grant-funded projects must deliver at least an average annual 20% electric bill savings or the equivalent to eligible low-income households, provide 100% of the benefits to eligible low-income households, or, for residential-serving community solar projects, provide at least 50% of the benefits to eligible low-income households.

Additional information on the grant application process, including eligibility criteria and application deadlines can be found on the EGLE website.