The Trump Administration’s “One Big Beautiful Bill” has made significant cuts to residential clean energy tax credits.
- The $7,500 tax credit for new EVs, and $4,500 tax credit for used EVs will expire on September 30, 2025
- The 30% tax credit for residential solar projects will expire December 31, 2025
- The $2,000 tax credit for heat pumps and heat pump water heaters will expire December 31, 2025
- The $1,200 tax credit for efficiency upgrades will expire December 31, 2025
In order to qualify for these credits, your project must be “placed in service” before the expiration date. If you have been considering any of these projects, now is the time!
Based on conversations with a sampling of contractors, it is still possible to complete some of these projects by the end of the year if you get started in the next few weeks.
Getting Started
There are many resources that can help you get started, and local experts to help you along the way.
- Lexington HeatSmart Advisors: Connect with a trained advisor through the Town’s Lexington HeatSmart program. The advisor can answer your questions about heat pumps, hot water heaters, and solar, as well as help you navigate the changing incentives, and suggest some companies to reach out to. This is a free offering for all Lexington residents.
- LexElectrify: The Town’s LexElectrify campaign provides a set of webpages to provide more information to residents about weatherizing their homes, going solar, installing heat pumps, installing more efficient appliances, and purchasing electric cars.
Questions? Reach out to the Town’s Sustainability & Resilience Officer, Maggie Peard at mpeard@lexingtonma.gov.
