Green Newton

The Green Energy Consumers Alliance explains how to claim your federal clean energy tax credits for 2024. Note: Always consult a qualified tax professional to determine your eligibility for tax credits.

Electric Vehicles – Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit

If you purchased an electric vehicle in 2024, you need to submit Form 8936 to claim the federal tax credit. You’ll need the time-of-sale report the dealer or store should have given you when you purchased your car. You must file Form 8936 even if you got the credit at the time of sale.

Here are the steps to take to claim the credit.

1. Visit Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After (fueleconomy.gov), select the appropriate option in the “delivery date” drop-down menu, and review whether the vehicle you purchased qualifies for a federal tax credit.
2. If yes, fill out form 8936 and file it with your taxes. You can find the form and the instructions here: About Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit | Internal Revenue Service (irs.gov)

If you didn’t get an EV in 2024 but plan to in 2025 (whether new or used), please note that the list of vehicles that qualify has changed. In addition, though the federal tax credit is still in place, the new federal administration has made it clear that they would like to do away with the tax credit. Exactly how this will all play out remains to be seen, but you can learn more in our November blogpost, Want An Electric Vehicle?.

Solar, Heat Pumps, & Energy Efficiency – Form 5695, Residential Energy Credits

For qualifying solar, battery storage, heat pumps, and even energy efficiency upgrades, you will use Form 5695.

Solar

You’ll find Solar & Battery Storage on Part I (Residential Clean Energy Credit) of Form 5695. You can receive a tax credit for up to 30% of the cost of your installation. If you don’t have enough tax liability, you can carry it forward to future years to reclaim the full 30%. And if you installed the system in 2023, you can check if you have leftover credit to claim in 2024.

This blog from our partners at EnergySage (from 2023) thoroughly covers the credit for solar installations and is still accurate for 2024. Here’s a snippet that illustrates carrying the credit forward:

“Let’s say you spend $25,000 to install a solar system on your home… which means you are eligible for a $7,500 federal solar tax credit. If your federal tax liability… is only $5,000, you will owe no federal taxes that year, and [next year], you’ll reduce your tax liability by $2,500.” Form 5695 instructions: How to claim the solar tax credit by EnergySage

Additionally, check with a tax professional to see if you qualify for any state tax incentives.

Heat Pumps