Los Altos officials are reminding residents that federal tax credits for energy savings are phasing out early after Congress passed the One Big Beautiful Bill Act in July.
“The legislation’s shortened deadlines for several federal energy tax credits mean local residents need to act soon to claim them,” said Tania Katbi, sustainability management analyst for the city.
According to Silicon Valley Clean Energy (SVCE), electric vehicle tax credits expire on Sept. 30. EVs must be purchased by that date to qualify.
Heat pump, electric panel and insulation federal tax credits expire on Dec. 31. Installations must be completed by that date to qualify. HEEHRA (Home Electrification and Appliance Rebates) and HOMES (Home Efficiency Rebates) credits, both under the federal Inflation Reduction Act, will remain available.
Solar and battery storage tax credits also expire on Dec. 31. Expenditures must be made before that date to qualify.
Despite the changes to federal tax credits, SVCE rebates and services will remain available and can be combined with other incentives.
“Explore how to maximize your savings by stacking SVCE incentives with tax credits,” SVCE officials advise.
Rebates often require reservations and permits – most rebate programs require consumers to reserve their rebate before making an appliance upgrade.
In addition, most programs also require applications for the requisite permits from the applicant’s city or county and proof of permit application to claim the rebate.
Combined rebates and tax credits cannot exceed total project costs – the rebate amount will be adjusted if the project cost is less than the rebate.
Projects must meet all requirements to be eligible for all programs – rebate programs may have different rules, including the ability to stack with other programs, equipment eligibility, contractor requirements and rebate applications.
Buyers should confirm rebate amounts and availability with the appropriate program administrator.
SVCE officials advise residents to learn more about federal tax credits (visit energystar.gov/about/federal-tax-credits) and consult a professional tax advisor on how to claim them.
