Did you dawdle on that new heat pump or EV? Better move fast to get those tax credits

Core Points - Tax incentives for home efficiency upgrades, clean energy installations, and electric vehicles in the U.S. are expiring this year, prompting urgency for residents to act quickly [1] - The Inflation Reduction Act of 2022 introduced various tax credits aimed at making cleaner alternatives more affordable and reducing greenhouse gas emissions [2][3] Summary by Category Tax Incentives Overview - The credits are designed to help consumers afford cleaner technologies such as heat pumps and electric vehicles, while also addressing climate change by reducing greenhouse gas emissions [3] - Eligible home upgrades include energy audits, heat pumps, solar panels, water heaters, appliances, battery storage, car chargers, and improvements to windows, doors, insulation, and electrical panels [3] Financial Implications - Tax credits provide direct financial benefits at tax filing time, allowing consumers to reduce their tax liability based on qualifying expenses [4] - Most home improvement credits are capped at $1,200 per year, while heat pumps and water heaters have a $2,000 cap; larger expenses like geothermal heat pumps and rooftop solar systems offer a 30% tax credit on the purchase price [5] Expiration Details - Most tax credits are set to expire at the end of this year, with specific deadlines for certain credits, such as the clean vehicle tax credit, which expires on September 30 [6] - The clean vehicle tax credit allows for upfront savings at the point of sale, making it a unique option for consumers purchasing qualifying electric vehicles [6]