{"id":5696,"date":"2025-08-01T11:02:33","date_gmt":"2025-08-01T16:02:33","guid":{"rendered":"https:\/\/www.paenergyratings.com\/blog\/?p=5696"},"modified":"2025-08-01T11:02:40","modified_gmt":"2025-08-01T16:02:40","slug":"new-law-ends-home-energy-efficiency-tax-credits-for-pa","status":"publish","type":"post","link":"https:\/\/www.paenergyratings.com\/blog\/new-law-ends-home-energy-efficiency-tax-credits-for-pa\/","title":{"rendered":"New Law Ends Home Energy Efficiency Tax Credits for PA"},"content":{"rendered":"\n<h2>Big Beautiful Bill Eliminates Key Tax Credits<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright size-medium\"><img loading=\"lazy\" width=\"300\" height=\"200\" src=\"https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/08\/PA-energy-tax-credits-300x200.jpg\" alt=\"Energy efficient tax credits will end on January 1. Learn your PA home's energy bills could rise even higher.\" class=\"wp-image-5735\" title=\"Big Beautiful Bill Eliminates Key Tax Credits\" srcset=\"https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/08\/PA-energy-tax-credits-300x200.jpg 300w, https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/08\/PA-energy-tax-credits-150x100.jpg 150w, https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/08\/PA-energy-tax-credits-230x153.jpg 230w, https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/08\/PA-energy-tax-credits-350x233.jpg 350w, https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/08\/PA-energy-tax-credits-480x320.jpg 480w, https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/08\/PA-energy-tax-credits.jpg 724w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption><center><em>If you&#8217;re thinking about using energy efficiency tax credits to help pay for your home&#8217;s upgrades, get moving fast! Learn why these are ending and how they affect your PA energy bills.<\/em><\/center><\/figcaption><\/figure><\/div>\n\n\n\n<p>If you were thinking of taking advantage of home energy efficiency tax credits, then you don&#8217;t have long to do it. The <a href=\"https:\/\/philadelphiapact.com\/8-ways-the-final-one-big-beautiful-bill-act-changes-tax-law\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">One Big Beautiful Bill <\/a>Act (OBBBA) has slashed the tax credits. Now, most of them will expire next year. Among other things, the home credits help with the cost of new windows, more efficient HVAC systems, and solar panels.  With rising <a href=\"https:\/\/www.paenergyratings.com\/electricity-rates\" target=\"_blank\" rel=\"noreferrer noopener\">electricity rates<\/a>, the loss of these credits will hurt homeowners. Already this year some PA utilities have seen electricity prices rise up to 16%. And without the tax credits, you could see another $130 a year in energy costs, according to PA <a href=\"https:\/\/www.facebook.com\/governorshapiro\/posts\/the-federal-budget-bill-congress-just-passed-is-shameful-and-it-is-going-to-hurt\/1273486124133738\/\" target=\"_blank\" rel=\"noreferrer noopener\">Gov Josh Shapiro<\/a>. But it&#8217;s not the only way the loss of the tax credits will hurt PA.<\/p>\n\n\n\n<h3>Home Energy Efficiency Tax Credits Ending Soon<\/h3>\n\n\n\n<p>Most of the credits, introduced in the Inflation Reduction Act in 2022, were set to expire in 2032. Now, the OBBBA ends these <a href=\"https:\/\/www.sdmayer.com\/resources\/changes-to-clean-energy-tax-incentives-under-the-obbba\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">clean energy credits<\/a> at the end of this year! <\/p>\n\n\n\n<p>First on the chopping block is the Energy Efficient Home Improvement Credit (Section 25C). This credit offers 30% back on certain energy efficient home improvements. Such as new windows, improved insulation, or home energy audits. Then there&#8217;s Residential Clean Energy Credit (Section 25D). This credit offers 30% back for installing solar panels, wind systems, geothermal heat pumps, or biomass energy equipment. Both credits now expire on December 31, 2025.<\/p>\n\n\n\n<p>So if you want to take advantage of these credits by making home improvements or getting <a href=\"https:\/\/www.paenergyratings.com\/solar\" target=\"_blank\" rel=\"noreferrer noopener\">solar for your home<\/a>, you should do it soon!<\/p>\n\n\n\n<h3>End of Energy Efficiency Tax Credits Hurts PA<\/h3>\n\n\n\n<p>But missing a tax break isn&#8217;t the only way the OBBBA is hurting PA. In a letter to PA&#8217;s congressional delegation before the bill had left the House, <a href=\"https:\/\/penncapital-star.com\/briefs\/shapiro-warns-pa-members-of-congress-against-cutting-renewable-energy-funds\/\" rel=\"nofollow\">Gov. Josh Shapiro<\/a> warned that jobs were on the line. He stated \u201cOver $3 billion in direct investment in Pennsylvania energy projects would be undermined by H.R. 1\u2019s tax increases. That includes potential impacts to over 70 facilities that have been announced across the commonwealth, directly threatening more than 26,000 jobs by 2030 due to the effective tax hikes.\u201d<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.post-gazette.com\/business\/powersource\/2025\/07\/27\/pennsylvania-solar-clean-energy\/stories\/202507270047\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">solar sector<\/a> is already feeling a surge with a certain amount of dread. Business is peaking as homeowners scramble install solar before the end of the year. But afterwards, companies expect layoffs and closures.<\/p>\n\n\n\n<h3>Is PA Facing an Energy Crisis? <\/h3>\n\n\n\n<p>We need energy savings now more than ever. The entire PJM electric grid is <a href=\"https:\/\/www.reuters.com\/sustainability\/boards-policy-regulation\/americas-largest-power-grid-is-struggling-meet-demand-ai-2025-07-09\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">struggling <\/a>to meet energy demand, driving up electricity rates. And renewables could save us from an energy crisis.<\/p>\n\n\n\n<p>PJM has long wrestled with adding power to the grid; especially with green energy. In April 2024, some\u00a0<a href=\"https:\/\/emp.lbl.gov\/sites\/default\/files\/2024-04\/Queued%20Up%202024%20Edition_1.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">3,009 power projects<\/a>\u00a0sat waiting in the PJM connection queue. And while <a href=\"https:\/\/www.eenews.net\/articles\/solar-powers-lost-opportunity-in-pjm\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">solar power<\/a> has been one of the fastest growing utility scale power sources in the country, PJM has lagged behind.<\/p>\n\n\n\n<p>While the new law seeks to build more natural gas generators, electric rates will rely even more heavily on gas&#8217; volatile global pricing. Green energy is\u00a0<a href=\"https:\/\/www.weforum.org\/agenda\/2021\/07\/renewables-cheapest-energy-source\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">cheaper to produce<\/a>\u00a0than fossil fuel energy and has fewer outages, making it more\u00a0<a href=\"https:\/\/www.energy.gov\/eere\/renewable-energy\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">reliable<\/a>.\u00a0<\/p>\n\n\n\n<h3>Save on Energy in PA<\/h3>\n\n\n\n<p>If you want to save money, make sure to take advantage of these tax credits before they expire. But if you really want to save even more, shop for a cheaper electricity plan. Compare plans,<a href=\"https:\/\/www.paenergyratings.com\/read-reviews\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0read reviews<\/a>, and more. Visit\u00a0<a href=\"https:\/\/www.paenergyratings.com\/\">https:\/\/www.paenergyratings.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Big Beautiful Bill Eliminates Key Tax Credits If you were thinking of [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":5734,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mbp_gutenberg_autopost":false},"categories":[63,90,9],"tags":[],"_links":{"self":[{"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/posts\/5696"}],"collection":[{"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/comments?post=5696"}],"version-history":[{"count":9,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/posts\/5696\/revisions"}],"predecessor-version":[{"id":5737,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/posts\/5696\/revisions\/5737"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/media\/5734"}],"wp:attachment":[{"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/media?parent=5696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/categories?post=5696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/tags?post=5696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}