If you plan to claim these ag-friendly clean vehicle, green renovation and other green tax credits this year, you’ll need to act fast before they’re phased out by OBBBA.
Every year, American agricultural producers save money by claiming green tax credits and deductions. But that is about to change.
The One Big Beautiful Bill Act (OBBBA), signed into law this July, eliminates tax credits and deductions for electric and fuel cell vehicle purchases, energy-saving building upgrades and other similar expenses.
The good news is that these credits and deductions are still available if you take advantage of them before they officially expire. So it’s not too late—but you have to act fast.
Here’s a breakdown of the seven credits due to be axed by the OBBBA, how they apply to ag producers, how to qualify for them and how long until they’re gone.
What do these credits cover?
These credits cover a wide range of expenses that are relevant to agricultural producers and folks who live in rural communities.
The Clean Vehicle Credit can help cover the cost of new and used electric vehicles for personal use, for example, while the Commercial Clean Vehicle Credit can help defray the cost of EV trucks, delivery vans, ATVs, tractors and other equipment you use in your business.
The Residential Clean Energy Credit can help pay for rooftop solar panels, wind turbines, battery storage, geothermal heating and solar water heaters. Meanwhile the Energy Efficient Home Improvement credit can be used to defray the costs of heat pumps, water heaters, weatherization, insulation, new electrical panels and a home energy audit.
The green tax credit phaseout schedule
If you’re planning to qualify for green tax credits and deductions, these are the deadlines you need to watch out for:
| End date | Name of Credit / Deduction |
|---|---|
| September 30, 2025 | Clean Vehicle Credit |
| Used Clean Vehicle Credit | |
| Commercial Clean Vehicle Credit | |
| December 31, 2025 | Residential Clean Energy Credit |
| Energy Efficient Home Improvement Credit | |
| June 30, 2026 | Alternative Fuel Vehicle Refueling Property Credit |
| New Energy Efficient Home Credit | |
| Energy Efficient Commercial Buildings Deduction |
Read on for a full breakdown of which expenses are covered by each program, how much you can claim and which tax forms you’ll need to file.
1. Clean Vehicle Credit and Used Clean Vehicle Credits
End date: September 30, 2025
The clean vehicle credit and used clean vehicle credit are both nonrefundable credits that you can claim on your personal return if you purchase an electric vehicle (EV) or fuel cell vehicle (FCV) before the September 30th, 2025 end date.
Note that these credits only apply to vehicles for personal use. For business-use vehicles, you can claim the commercial clean vehicle credit (see #2 below).
Which vehicles are eligible?
Vehicles which are majority business-use, and for which you claim the vehicle deduction, do not qualify. Still, agricultural producers might be able to benefit from these credits by purchasing an EV or hybrid for commuting or running non-business-related errands.
Vehicles qualifying for these credits do not include ATVs or other off-road vehicles. To see which vehicles qualify, we recommend using the fueleconomy.gov search tool.
Tax credit amount and limits
You can claim tax credits equivalent to 30% of a vehicle’s sale price, to a maximum of $7,500 for new vehicles and $4,000 for used vehicles.
For new vehicles, you can claim up to $3,750 if the vehicle meets critical mineral requirements only, $3,750 if it meets battery requirements only or $7,500 if it meets both requirements.
Any new vehicle you purchase must have an MSRP of $80,000 or less if it is a van, pickup truck, or SUV. All other types of vehicles have an MSRP limit of $55,000. If you’re claiming the used vehicle tax credit, the vehicle you buy must cost less than $25,000 at time of sale.
AGI limits
The AGI limit for individual filers is $150,000. For heads of households, it’s $225,000, and for married couples filing jointly or surviving spouses it’s $300,000.
For the sake of qualifying for the credit, you may use your AGI either from the year in which you are filing or the year prior. As long as your AGI falls under the limit for one of those years, you can claim the credit.
How to claim the credit
This credit applies only to new and used vehicles purchased at dealerships. The dealer must be registered with the IRS and report the purchase when it’s made.
They should also provide you with a time-of-sale document which you can use to prove the purchase date. This is especially important if you plan to buy a vehicle before the September 30th, 2025 cutoff.
You can claim both new and used vehicle tax credits by filing Form 8936 with your personal tax return.
2. Commercial Clean Vehicle Credit
End date: September 30, 2025
Similar to the clean vehicle credits you can claim on your personal return, the commercial clean vehicle credit allows you to claim a nonrefundable tax credit for a portion of a vehicle’s value, up to certain limits.
In this case, you may claim the credit for your business. The commercial clean vehicle credit benefits ag producers because you can use it to offset the cost of new work vehicles, provided those vehicles qualify.
Which vehicles are eligible?
A wider range of vehicles qualify for the commercial clean vehicle credit than for the personal use clean vehicle credits. The list of qualifying manufacturers includes companies that produce electric and hybrid ATVs, tractors, moveable equipment, and other vehicles that may be used in an agricultural setting.
How to calculate the credit amount
One drawback to the commercial clean vehicle credit: it’s a little trickier than other clean vehicle credits to calculate. Here are the steps you need to follow:
Calculate the maximum deduction based on whether the vehicle is light (14,000 lbs or under) or heavy (over 14,000 lbs). The maximum deduction for light vehicles is $7,500. For heavy vehicles, it’s $40,000.
Calculate your basis in the vehicle, or the percentage of its value you are able to deduct. For EVs, the basis is 30 percent. For hybrids and other vehicles that include non-electric engines, the basis is 15 percent.
Find the incremental cost of the vehicle set by the Department of Energy (DOE): $7,000 for compact plug-in vehicles weighing less than 14,000 lbs, $7,500 for street-use vehicles weighing under 14,000 lbs, or $40,000 for heavy vehicles weighing over 14,000 lbs.
Compare the maximum deduction amount, the cost basis, and the incremental cost you have calculated above. Whichever amount is the smallest is the amount you can claim in credits.
How to claim the credit
If your ag operation is a partnership or an S corporation, you can claim this credit by filing Form 8936. If it is any other type of business entity, claim the credit on Form 3800 (general business credits).
3. Residential Clean Energy Credit
End date: December 31, 2025
You can claim the residential clean energy credit on your personal tax return. It’s a nonrefundable credit that you can claim for purchasing clean energy property for your home. That includes rooftop solar panels, wind turbines, battery storage, geothermal heating, solar water heaters and similar items.
If, like many folks living rurally, you deal with frequent power outages due to weather—or if you simply want to reduce your utilities bill—this credit offsets some of the cost of making your home more self-sufficient.
Tax credit amount and limits
You can claim up to 30% of the cost of qualifying property; that includes certain labor and installation costs. There is no annual or lifetime cap on the amount you can claim, and no limits based on your AGI.
One exception: fuel cells. Your credit is limited to $500 for each half-kilowatt of capacity, or $1,667 for each half-kilowatt of capacity if more than one person lives in your home.
Also, if you use 20% or more of your home for business purposes, the total amount of the credit is limited.
Which homes qualify?
This credit can be applied to new construction. You can claim this credit even if the home you claim it for is not your primary place of residence.
The exception is fuel cells, for which you can only claim credits if the home is your primary place of residence.
However, if you are the landlord and do not live in the home, you cannot claim the credit, period.
How to claim the credit
You can claim this credit by filing Form 5965 with your personal tax return. Be sure to keep records of all purchases you claim. That includes invoices from contractors who install property you have purchased.
4. Energy Efficient Home Improvement Credit
End date: December 31, 2025
If you make upgrades to your home to make it more energy efficient—by installing a new heat pump, weatherization, insulation, new electrical panels or by purchasing a home energy audit—you can claim this nonrefundable credit on your personal return.
This credit covers purchases not covered by the residential clean energy credit—namely, it applies to property you buy to help you reduce the amount of energy you use rather than to generate energy (e.g. solar panels).
Tax credit amount and limits
The total annual limit on this tax credit is $3,200. You can apply this tax credit to energy-saving property, as well as the cost of installation. But for ‘building envelope’ property—including doors, windows, and insulation—only the cost of the property may be applied.
In addition the the total annual limit, different types of purchases have individual annual limits:
| Total annual limit | Individual item limits | Qualifying purchases |
|---|---|---|
| $150 | $150 | Home energy audit (by certified auditor) |
| $2,000 | $2,000 | Heat pumps |
| $2,000 | Biomass stoves/boilers | |
| $1,200 | $600 | Efficient AC units |
| $600 | Efficient furnaces/boilers | |
| $600 | Efficient water heaters | |
| $600 | Electric panel/circuit upgrades | |
| $1,200 | Insulation/air sealing | |
| $500 ($250/door) | Exterior doors | |
| $600 | Exterior windows/skylights |
Which homes qualify?
This credit cannot be applied to new construction. To qualify, a home does not need to be your primary residence, but you must live there some of the time. If you are a landlord and you do not live in the home, you can’t claim this credit.
How to claim the credit
To claim this credit, Form 5965 with your personal tax return. Be sure to keep records of all purchases you claim. That includes invoices from contractors who install property you have purchased.
5. Alternative Fuel Vehicle Refueling Property Credit
End date: June 30, 2026
If you install a recharging or refueling station for EVs or FCVs on qualifying property, you can claim a nonrefundable credit on either your personal or your business tax return.
Importantly, “qualifying property” includes non-urban census tracts—meaning your agricultural property most likely qualifies.
If you’ve already taken the plunge and purchased an EV or FCV—either for personal use or for agricultural use—then you can take advantage of this tax credit to offset the cost of a refueling station or facilities for fuel storage.
Tax credit and limits
If you install it on personal property (and report it on your personal return), you can claim up to 30% of the cost of refueling stations or fuel storage facilities up to a limit of $1,000 per item.
If you install it on business property (and report it on your business return), you can claim up to 6% of the cost, with a $100,000 limit per item.
Who qualifies?
To find out whether you qualify for this credit:
Find your property with the census tract identifier.
Write down your 11-digit GEOID.
Look for your GEOID in Appendix B. (Use ‘CTRL+F’ or ‘CMD+F’ to search the document.)
If your property’s GEOID is listed in Appendix B, you qualify for the credit.
How to claim the credit
To claim this credit on your personal return, file Form 8911. To claim this credit on your business return, file Form 8911 if your business is a partnership or S corporation. All other business types should use Form 3800.
6. New Energy Efficient Home Credit
End date: June 30, 2026
If you start construction on an energy efficient home before the June 30th end date, you can claim up to $5,000. This could benefit you if you are moving to a new property, or building an additional home or housing on your current land.
Credit amount and limits
The maximum credit you can claim is $5,000 and the minimum is $500. The amount you are able to claim depends on which energy saving requirements the home qualifies for.
Which homes qualify?
In order to qualify, you must either build or hire a contractor to build the home, and you must own a basis in it during construction. Qualifying homes meet at least one of the following Energy Star requirements:
For details on energy-saving requirements, see IRS Notice 2008-35, or IRS Notice 2008-36 for manufactured homes.
How to claim the credit
To claim this credit, a qualified certifier must attest that the home meets energy-saving requirements. They will complete a portion of Form 8908, which you file with your personal tax return.
7. Energy Efficient Commercial Buildings Deduction
End date: June 30, 2026
If you construct an energy efficient building for business use, or if you modify an existing business-use building by purchasing energy efficient property, you may be able to claim a significant tax deduction for your business.
Construction must start before the June 30th end date to qualify.
Word of warning, however: you’ll need professional help from a contractor or consultant to accurately calculate the amount of this deduction. A number of complex factors affect the amount you are able to claim.
That being said, by claiming this deduction you may be able to offset the cost of building or updating a barn, stable, or crop storage facility—realizing some savings upfront on what is likely a hefty investment for your ag operation.
Tax deduction amount and limits
This deduction is calculated based on the square footage of the building. The more energy efficient it is, the more you can claim per square foot. The amount ranges from $0.58 to $1.16.
That amount increases fivefold if you meet prevailing wage and apprenticeship qualifications.
How to calculate your deduction
To precisely calculate your deduction, work with an experienced contractor or consultant. Before doing that, however, you may be able to estimate your potential deduction with the DOE deduction estimate tool.
When a professional you hire actually calculates the deduction, they’ll use one of two methods:
The traditional pathway. Your building’s total energy use is compared to the energy use of a reference model.
The alternative (measurement) pathway. The deduction is calculated based on a building’s total energy use after it has been modified. (This applies to retrofitted or renovated properties.)
How to claim the deduction
With the help of a professional, you can claim this deduction by filing Form 7205 with your business return.
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Plus, with time-saving bookkeeping automation features, automatically-generated financial reports, streamlined bill pay and invoicing, and other powerful accounting and financial management tools, Ambrook doesn’t just make expense and revenue tracking simple: it takes the guesswork out of running your business. Want to learn more? Schedule a demo today.
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This resource is provided for general informational purposes only. It does not constitute professional tax, legal, or accounting advice. The information may not apply to your specific situation. Please consult with a qualified tax professional regarding your individual circumstances before making any tax-related decisions.
