Enacted by Congress in July of this year, the One Big Beautiful Bill Act (OBBBA) sets end dates for several tax credits for individuals and families. Understanding these rule changes can help you prepare for the upcoming filing season and for future tax years.

Two major residential energy credits remain available at present, but will expire on December 31, 2025:

Energy Efficient Home Improvement Credit

The Energy Efficient Home Improvement Credit reimburses people for part of the cost of projects that reduce energy losses or overall energy use. Potentially eligible installations include doors and windows that significantly reduce air leakage, along with water heaters and heat pumps with top efficiency ratings. A portion of the cost of a home energy audit performed by a certified expert may also qualify for the credit.

Residential Clean Energy Credit

Meanwhile, homeowners who install energy-generating equipment like solar panels or wind turbines may qualify for the Residential Clean Energy Credit. Eligible purchases also include certain appliances that use alternative energy sources, such as solar-powered water heaters. Note that to qualify for either the Energy Efficient Home Improvement or Residential Clean Energy Credit, installations must be performed by December 31.

Premium Tax Credit (PTC)

In addition, the OBBBA reduces the amount of the health insurance Premium Tax Credit (PTC) beginning in 2026. In the absence of new legislation, many people who purchase health plans through the Insurance Marketplace will see their PTC amount decrease in 2026. As a result, they may have to pay higher insurance premiums.

Note that none of these rules will affect credits that people qualified for in 2025 before the law changes took effect. For example, if you complete the steps necessary to qualify for a home energy credit before the credit expiration date, then you may claim the credit as usual on your 2025 tax return.