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The IRA tax credit window: which incentives expire when

Policy

30 percent solar ITC runs through 2032. Heat pump credit caps $2,000/yr. EV charger 30C. Battery 30 percent. The full IRA credit-by-product timeline.

Harry Parker

Energy Consultant, Seenra Inc

Policy11 min readPublished

Featured infographic

IRA credit window timeline 2023-2034

2023-2032: full 30 percent ITC. 2033: 26 percent. 2034: 22 percent. 2035+: 0 percent.

Open graph image · /og/rate-trend.png

The IRA 30 percent residential ITC for solar, battery, and geothermal runs through 2032 then steps down. The 25C heat pump credit (capped at $2,000) and 30C EV charger credit (capped at $1,000) run annually through 2032. Stacking IRA credits across multiple eligible products in the same tax year is allowed up to the $3,200 annual cap on 25C.

Credit-by-product timeline

25D residential solar/battery/geothermal: 30 percent through 2032, 26 percent in 2033, 22 percent in 2034, 0 percent in 2035+. No annual dollar cap.

25C efficiency credit: $3,200 annual cap, runs through 2032 then expires. Heat pump $2,000, heat-pump water heater $2,000 (counts toward $3,200 cap), induction $840 (HEAR program for income-qualified).

Max stack worksheet

Single tax year max stack: 25C ($3,200 capped: heat pump $2,000 + insulation $1,200) + 25D (no cap: solar $5,700 + battery $4,500) + 30C ($1,000 EV charger).

Total in single tax year: $14,400+ for a household completing a major retrofit. Spread over 2 years allows another $3,200 of 25C in year 2.

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Common questions

Quick answers from the editorial desk

Rebate vs tax credit?
Tax credit reduces your tax liability dollar-for-dollar at filing. Rebate is upfront cash at purchase (state HEAR/HER programs). Both can stack on the same purchase.
Income limits on IRA credits?
25C and 25D have no income limits. 30C EV charger only applies in low-income or rural census tracts. HEAR rebate is income-qualified at state level.
Multi-year stacking?
Yes. 25C $3,200 annual cap resets each tax year. Spreading large retrofits over 2 to 3 years maximizes the cumulative credit.
Are credits refundable?
No, 25C and 25D are non-refundable (offset tax liability only). If your tax liability is less than the credit, excess does not roll over.

Further reading

Pillar guide, cluster siblings, and state pages cited above

Sources

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