Act now on EV, solar, and home energy tax credits before 2025 deadlines, and review key federal gift tax rules, exclusions, and strategies:
- If you’re considering the purchase of an electric vehicle for your business or personal use, now is the time to pay close attention
- If you’re considering solar panels or other renewable energy upgrades, 2025 is your last chance to take full advantage of the 30% Residential Clean Energy Credit
- Current tax law (after enactment of the One Big Beautiful Bill Act) allows homeowners to claim up to $3,200 in 2025 tax credits for energy-efficient home improvements
- Did you know that giving money or property to someone without receiving full value in return may be considered a taxable gift under federal law?
Urgent: Want an Electric Vehicle? Act by September 2025
If you’re considering the purchase of an electric vehicle for your business or personal use, now is the time to pay close attention.
On July 4, the president signed the One Big Beautiful Bill Act that terminates the following three major electric vehicle tax credits, effective September 30, 2025:
- Section 45W—Commercial Clean Vehicles Credit. Up to $7,500 for light electric vehicles and up to $40,000 for heavy-duty commercial vehicles.
- Section 30D—New Clean Vehicle Credit. Up to $7,500 for qualifying new electric vehicles, with requirements for domestic sourcing of battery components and minerals.
- Section 25E—Previously Owned Clean Vehicle Credit. Up to $4,000, or 30% of the purchase price, for eligible used electric vehicles.
If you are looking to buy an electric vehicle and want the tax credit, now is the time to act.
2025—Your Last Chance to Claim the Solar Tax Credit
If you’re considering solar panels or other renewable energy upgrades, 2025 is your last chance to take full advantage of the 30% Residential Clean Energy Credit (RCEC).
What Is the RCEC?
The RCEC is a federal, non-refundable tax credit equal to 30% of the cost of qualified clean energy systems, including:
- Solar electric panels
- Solar water heaters
- Geothermal heat pumps
- Small wind energy systems
Eligible properties include primary and secondary residences, as well as rentals occupied by the taxpayer. Landlords who do not reside in the property are not eligible.
What Changed?
The RCEC expiration date is now December 31, 2025, thanks to the newly enacted One Big Beautiful Bill Act.
Act Now
Installation takes time. From selecting a system to full installation and inspection, the entire process can span months. To qualify for the credit, you must place your system in service by December 31, 2025.
Although the RCEC is non-refundable, unused credits can carry forward to future tax years.
2025 Is Your Last Chance for Home Energy Improvement Tax Credits
Current tax law (after enactment of the One Big Beautiful Bill Act) allows homeowners to claim up to $3,200 in 2025 tax credits for energy-efficient home improvements, but only if those improvements are placed in service on or before December 31, 2025.
What’s Available?
There are two key credits to know about.
1. Up to $1,200/year for energy improvements to your primary residence, including:
- Exterior doors (up to $500 total)
- Windows and skylights (up to $600)
- Insulation and air sealing materials
- Energy-efficient furnaces, boilers, water heaters, air conditioners, and electric panels
2. Up to $2,000/year for advanced systems installed in either your main or second home:
- Electric or natural gas heat pumps
- Electric or natural gas heat pump water heaters
- Biomass stoves and boilers
Additionally, a $150 credit is available for a certified home energy audit, which helps you identify the most cost-effective upgrades.
Important Details
These are non-refundable annual credits, so they reduce your tax bill—but don’t result in a refund. Improvements must meet specific energy-efficiency standards and be installed (not just purchased) by the deadline. You must subtract subsidies or rebates (such as those from utilities) from the cost basis used to calculate your credit.
Take Action Now
If you’ve been considering upgrades such as insulation, new windows, or high-efficiency heating systems, 2025 is your last chance to take full advantage of these credits.
Understanding the Gift Tax: What You Need to Know
Did you know that giving money or property to someone without receiving full value in return may be considered a taxable gift under federal law? While making a gift is often a generous and well-intentioned act, it can come with reporting obligations—and in some cases, tax consequences.
What Is Considered a Gift?
A gift for tax purposes occurs when you transfer money, property, or other assets without receiving something of equal value in return. In such cases, you—the donor—may be required to file a federal gift tax return, and for substantial gifts, you could face gift taxes of up to 40%.
Importantly, gift tax liability falls on the donor, not the recipient. The person receiving the gift does not report it as income and does not pay gift tax (except in rare arrangements where they agree to do so).
Most Gifts Are Not Taxed—Here’s Why
Although the federal gift tax exists to prevent unlimited tax-free transfers of wealth during a person’s lifetime, relatively few people pay it—thanks to several key exclusions and exemptions.
Annual Gift Tax Exclusion. Each year, you can give a certain amount to any number of individuals without incurring gift tax or triggering a reporting requirement. For 2025, this annual exclusion amount is $19,000 per recipient.
For example, if you have three children, you can give each of them $19,000 in 2025—totaling $57,000—without needing to file a gift tax return.
Gift Splitting for Married Couples. If you’re married, you and your spouse can combine your exclusions—a strategy known as gift splitting. This allows you to give up to $38,000 per recipient in 2025 without triggering gift tax.
Lifetime Estate and Gift Tax Exemption. In addition to the annual exclusion, lawmakers allow a much larger lifetime exemption. Here are the 2025 limits:
- $13.99 million per individual
- $27.98 million for a married couple
This exemption covers the total value of gifts made during your lifetime and transfers made at death.
Even when you owe no tax, you must report gifts that exceed the annual limit to the IRS using Form 709, the U.S. Gift and Generation-Skipping Transfer Tax Return.
Gifts That Are Never Taxed
Certain gifts are completely exempt from gift tax, including:
- Charitable contributions
- Direct payments of another person’s education tuition (not room and board)
- Direct payments of medical expenses to providers
- Gifts between U.S. citizen spouses
- Gifts to political organizations
Direct Gifts versus Trust-Based Gifting
Giving directly—such as writing a check to a loved one—is the simplest form of gifting. However, it also means giving up all control over the assets. For those wishing to retain some oversight, gifts can be made through irrevocable trusts, which allow you to remove assets from your taxable estate while controlling how and when beneficiaries access those assets.
Trust-based gifting strategies can be powerful, but they come with complex legal and tax considerations, and should be implemented carefully with the help of an attorney.
Contact your tax and financial advisors to determine the best moves for your situation.