As we move into 2025, sustainability takes center stage, not only in our everyday lives but also in our financial planning. Two significant avenues for savings and contributing to a greener planet are the Home Energy Tax Credits and Electric Vehicle (EV) Tax Credits. Here’s what you need to know about maximizing these benefits.
Home Energy Tax Credits
Electric Vehicle (EV) Tax Credits
Determine whether your purchase of an electric vehicle (EV) or fuel cell vehicle (FCV) qualifies for a tax credit on the EV Tax Credit Eligibility flow chart or visit the Clean Vehicle Tax Credits webpage on the IRS website.
EV Tax Credit Eligibility Flow Chart
Combining Benefits for Maximum Savings
Strategic Planning
By strategically planning your home improvements and vehicle purchases, you can maximize your tax savings. It’s advisable to consult with a tax advisor to ensure you are eligible for both credits and to optimize your savings.
Documentation and Compliance
Maintain meticulous records of all transactions, from invoices for home improvements to purchase agreements for your EV. Proper documentation ensures that you can substantiate your claims and seamlessly file for these credits.
Conclusion
2025 presents ample opportunities to embrace energy efficiency and sustainability through Home Energy and Electric Vehicle Tax Credits. By understanding the eligibility criteria, keeping thorough documentation, and strategically planning your investments, you can significantly reduce your tax burden while contributing to a greener planet.
Contact us if you have questions about making energy-efficient improvements or purchasing energy-saving property for your home. Below is a printable table to review all the energy tax credits available.
Mitchell Erickson, CPA and Manager comments,
“As we look toward 2025, sustainability is a lifestyle choice and a financial strategy. By leveraging Home Energy and Electric Vehicle Tax Credits, homeowners can reduce their tax liability while contributing to a greener planet. Strategic planning and thorough documentation are key to maximizing these benefits. Let your actions today pave the way for a sustainable future.”
Let us exceed your expectations. For personalized advice and to ensure compliance, contact your CDS experts at (888) 388-1040.
