The Solar and EV Tax Credits Are Gone. Here's Where the Savings Moved

For a decade, “get the tax credit” was step one of every solar quote and EV pitch. That era is over. The One Big Beautiful Bill Act terminated the major clean-energy credits for individuals, and the last stragglers expired earlier this year. Here’s the honest map of what died, what you can still claim, and where the remaining money is.

What ended, and exactly when

Still filing your 2025 return? You can still claim 2025 projects

The expirations killed the credits going forward — they didn’t claw back 2025. If you’re on extension until October 15 and you installed solar or a heat pump, bought a qualifying EV before September 30, 2025, or completed efficiency work by December 31, 2025, those credits belong on the return you’re about to file. The solar credit in particular is 30% of the full system cost with no dollar cap, and any unused portion carries forward — do not let it fall off a rushed extension return.

Where the money still is in 2026

1. State and utility programs never depended on Congress

State rebates, property- and sales-tax exemptions for solar, and utility-level incentives (rebates for heat pumps, smart thermostats, panel upgrades, off-peak EV charging rates) are all still running, and in some states they were always worth more than the federal credit. Whether these programs are taxable income depends on how they’re structured — utility rebates generally reduce your cost basis instead of counting as income, but check before assuming.

2. SRECs: solar owners can still get paid

In states with renewable-credit markets, solar owners earn Solar Renewable Energy Certificates and sell them for cash. If you already own a system, this income stream continues — and yes, it’s taxable income, which surprises people at filing time.

3. The business angle survived — and it’s better than the old credit

Here’s the piece almost nobody is writing about: solar and energy equipment on business property is still deductible — often 100% in year one. The new law made 100% bonus depreciation permanent, and equipment serving a business (including a rental property run as a business, or the business-use share of qualifying property) can be fully expensed. A $60,000 solar array on a commercial building can produce a $60,000 first-year deduction. For business owners, the incentive didn’t disappear — it moved from the credit system to the depreciation system, and depreciation has fewer strings attached.

4. EVs on the business side

The consumer EV credit is gone, but a vehicle used predominantly in business is still depreciable like any other business asset, within the vehicle depreciation limits — and heavy SUVs and trucks over 6,000 pounds GVWR continue to enjoy generous first-year expensing. The math on a business-use EV changed; it didn’t die.

How this changes the decision

1. Buying solar for your home in 2026: judge it on electricity savings, state incentives, and financing cost alone. Any installer still quoting “30% federal tax credit” on a 2026 residential install is quoting a credit that no longer exists — treat it as a red flag for the whole quote.
2. Buying an EV: negotiate on price, not incentives. Dealers lost the credit too, and manufacturer discounts have been doing the work the credit used to do.
3. Business owners: route energy spending through the business where it legitimately belongs, and pair it with the bonus-depreciation rules before December 31.
4. 2025 stragglers: claim what you earned. The credits are only gone for new spending.

Our older guides on solar tax benefits and solar investing describe the pre-2026 rules — treat them as history now. The savings conversation in 2026 runs through your state, your utility, and your business return.