This story originally appeared on Grist and is part of the Climate Desk collaboration.
The “one big beautiful bill” that President Donald Trump signed into law on July 4 is set to upend many aspects of American life, including climate policy. The law, which Republicans backed en masse, not only derails the nation’s efforts to reduce greenhouse gas emissions, it could also strike a blow to consumers’ pocketbooks.
From a climate perspective, the legislation’s most significant rollbacks are aimed at industries such as renewable energy, not individuals. But there will be very real impacts for taxpayers hoping to decarbonize their homes.
The 2022 Inflation Reduction Act, or IRA, provided tax credits for climate-friendly purchases ranging from heat pumps to solar arrays through 2032. That time frame has been cut to as little as a few months.
“This bill is going to take away a lot of assistance from consumers,” said Lowell Ungar, director of federal policy for the nonprofit American Council for an Energy-Efficient Economy. He noted that 2 million people used the home improvement tax credit in its first year alone.
The good news is that the law does not affect the billions of dollars that the IRA already sent to state efficiency and electrification rebate programs and that much of that money will remain available beyond the federal sunsets. But, Ungar added, the tax credits can still save people thousands of dollars before they vanish.
“If consumers are able to make the investment now,” he said, “it will help them out.”
For those looking to act, here is a roundup of when credits will go away.
Buy an EV Before October
New electric vehicles that meet federal domestic manufacturing requirements qualify for a tax credit of up to $7,500. While credits on foreign-made EVs aren’t offered directly to consumers, automakers do get them and often pass the savings along through leases. Used EVs under $25,000 that are purchased at a dealer are also eligible for up to a $4,000 credit.
... continue reading