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This National Clean Energy Week, take advantage of tax credits for clean energy project upgrades on your home
September 19, 2025
As part of National Clean Energy Week, MI Environment is highlighting federal clean energy tax credits for Michigan residents. Many of these credits are phasing out in the coming months, but there is still time for families to take advantage of them.
If you’ve been considering upgrading your furnace or water heater, purchasing an EV, or making your home more energy efficient, now is the time to act. Deadlines are as soon as September 30 for EVs, and every dollar in credits that you can claim before these cuts fully take effect is money back in your pocket.
Federal clean energy tax credits have played a critical role in making clean energy more affordable, covering 30% or more of costs connected to solar panels, and hundreds of dollars for energy-efficient appliances, electric vehicles (EVs), and home improvements that help families lower their monthly utility bills. These incentives not only have saved working families thousands, but they have also helped advance goals in the MI Healthy Climate Plan, supported jobs in Michigan, and ensured reliable energy for homes, as demand for electricity continues to grow.
Michigan families and homeowners are encouraged to explore and use these cost-saving programs before they expire.
Residential Clean Energy Tax Credits
Tax Credit |
Description |
Eligibility Timeline |
---|---|---|
Up to $7,500 for a new vehicle from a registered dealership. |
Vehicles purchased before Sept 30, 2025, are eligible. |
|
Up to $4,000 for a used vehicle from a registered dealership. |
Vehicles purchased before Sept 30, 2025, are eligible. |
|
Up to $2,000 for a heat pump air conditioner |
Installations before Dec 31, 2025, are eligible. |
|
Up to $2,000 a heat pump water heater |
Installations before Dec 31, 2025, are eligible. |
|
Up to $1,200 for weatherization upgrades and improvements like insulation and air sealing |
Installations before Dec 31, 2025, are eligible. |
|
Up to $600 for installation of an electrical panel |
Installations before Dec 31, 2025, are eligible. |
|
Up to $150 to conduct a home energy audit. |
Installations before Dec 31, 2025, are eligible. |
|
30% of qualifying costs related to the purchase and installation of solar panels on your home |
Purchases made before Dec 31, 2025, are eligible. |
|
30% of qualifying costs related to the purchase and installation of battery storage on your home. |
Purchases made before Dec 31, 2025, are eligible. |
|
30% of qualifying costs related to the installation of geothermal heat pumps on your home. |
Purchases made before Dec 31, 2025, are eligible. |
|
Up to $1,000 for the purchase and installation of an EV charger on your home. |
Chargers placed in service before June 30, 2026, are eligible. |
Note:
*For expiring clean vehicle credits (the first two credits above): A vehicle is considered “acquired” when you have a signed contract and make any payment (even a small down payment or trade-in). If you acquire a vehicle by September 30, 2025, you can still claim the credit even if you don’t actually receive the vehicle until after that date - but you will not receive it until your vehicle is received and “placed in service”.
**For residential clean energy credit (solar, battery storage, and geothermal heating installations): Payment timing doesn’t matter - only installation completion does. If your solar panels, heat pump, etc. are installed after December 31, 2025, you can’t claim the 25D credit, even if you paid for them before that date.
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