Tax Day 2025: Last call for federal clean energy credits?

Lansing, Mich. – With Tax Day 2025 just around the corner, it’s a good time to highlight the important federal tax credits that are reducing energy bills for thousands of Michigan 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), Michigan residents claimed more than $183 million in federal tax credits for residential energy projects and electric vehicle purchases:

Residential Energy Credits

• 106,280 Michigan households received the energy efficient home improvement tax credit, offsetting nearly $80 million in eligible expenses for home energy efficiency and weatherization projects. The average credit was $750 per household.
• An additional 13,570 households claimed the residential clean energy credit (rooftop solar, heat pumps, etc), bringing an additional $54.6 million in direct tax relief to Michigan families. The average credit was more than $4,000 per household.

Clean Vehicle Credits

• 7,990 Michigan taxpayers received the clean vehicle tax credit that lowers the cost of purchasing an electric vehicle. This credit delivered over $51 million in direct savings to Michigan EV buyers, with the average credit knocking more than $6,600 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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