The Governor’s Office of Resiliency is urging Arizonans to take advantage of federal tax credits for electric vehicles or home energy efficiency upgrades before they are phased out.
When Congress passed the One Big Beautiful Bill Act, several federal tax credits to incentivize clean energy investments were cut short years before they had been set to expire.
“We want people to know that those tax credits – you can still take advantage of them, but you need to act now,” said Maren Mahoney, director of the Governor’s Office of Resiliency.
To get a $7,500 tax credit for a new electric car or a $4,000 for used electric car, you’ll have to purchase the vehicle by the end of September. And credits for rooftop solar panels, insulation, home weatherization, or heat-pump cooling systems will expire at the end of December.
Mahoney said solar panels and other clean energy upgrades can save consumers money on utility bills in the long-term.
“But some of the challenge for people with solar panels is that it does require an upfront investment. So if you’re going to invest and you want to save long-term, this is a great time to use those tax credits. Same thing with electric vehicles,” Mahoney said.
Impacted tax credits and deadlines
- New electric vehicle credit of up to $7,500. Purchase by Sept. 30, 2025
- Used electric vehicle credit of up to $4,000. Purchase by Sept. 30, 2025
- Heat pump air conditioner/heater credit of up to $2,000. Install by Dec. 31, 2025
- Heat pump water heater credit of up to $2,000. Install by Dec. 31, 2025
- Weatherization/insulation credit of up to $1,200. Install by Dec. 31, 2025
- Electrical panel credit of up to $600. Install by Dec. 31, 2025
- Home energy audit credit of up to $150. Install by Dec. 31, 2025
- Rooftop solar credit of up to 30% of qualifying costs. Install by Dec. 31, 2025
- Battery storage credit of up to 30% of qualifying costs. Install by Dec. 31, 2025
- Geothermal heating credit of up to 30% of qualifying costs. Install by Dec. 31, 2025
- EV Charger credit of up to $1,000. Place in service by June 30, 2026
More information is listed at resilient.az.gov/clean-energy-hub
