A new law signed by President Trump on July 4 is set to roll back climate policies and impact consumers’ pocketbooks. The law reduces the time frame for tax credits for climate-friendly purchases, such as heat pumps and solar arrays, from 2032 to as little as a few months. This means that consumers who want to take advantage of these credits must act quickly. The credits for electric vehicles, home improvements, and solar panels will expire on September 30, December 31, and December 31, respectively.
The expiration of these credits could make electric vehicles and other climate-friendly technologies more expensive and less accessible to low- and moderate-income Americans. However, experts note that these improvements can still make financial sense in the long term, as they can lead to energy savings and lower energy bills. Consumers are advised to confirm any changes with a tax professional and to move quickly to take advantage of the remaining credits. Despite the rollback of these credits, billions of dollars in state efficiency and electrification rebate programs will remain available, providing some relief for consumers.