NJ residents rush to get solar, EV tax credits before they end
By: Daniel Munoz
NorthJersey.com
USA Today Network - New Jersey
..... A number of clean energy tax credits are expiring this fall [2025] as part of the "Big Beautiful Bil;l" that President Donald Trump signed on July 4 [2025] - and some North Jersey residents are rushing to take advantage before the credits run out.
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The expiring incentives were meant to cover a portion of the cost to install solar panels as well as to buy an electric car. These were drastically expanded by the Inflation Reduction Act signed in 2022 under President Joe Biden.
..... The federal government currently offers a $7,500 tax credit tor buy new electric vehicles and up to $4,000 to buy a used one. These were originally set to expire at the end of 2032, but now expire on September 30 this year. [2025]
..... The federal government also offered a tax credit covering up to 30% of the cost to install home solar energy, like rooftop solar panels. That ends on December 31. [2025]
..... "We're seeing like a very large influx of people calling "about solar installation," said
Murphy Panagiotou, who owns home solar installation company Infinity Energy in Mahwah.
..... "People are aware that the 30% income tax credit will be going away," he continued. "Our demand has shot up through the roof."
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For people interested in getting solar, "get in line ASPA," said Steve Kalland, executive director of the North Carolina Clean Energy Technology Center, based at North Carolina State University in Raleigh.
..... "If you're not in line by October1, [2025] you're not going to get it done this year, [2025] he said in an interview.
..... But the interest in electric vehicles ahead of the tax credit expiration hasn't necessarily been as high, said Rick DeSilva, a partner at the car dealership Liberty Subaru, Liberty Hyundai and Liberty Kia in Mahwah.
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For electric cars, New Jersey has chipped away at tis own incentives, such as a state-level sales tax exemption that previously saved thousands of dollars on the final car price. The state also recently tacked on registration fees for electric cars, likely depressing demand, DeSilva said.
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So the people who've wanted electric vehicles have already purchased them - and there has not been an additional appetite among other consumers for EVs, he said.
..... Still car dealerships "will likely see an uptick in the end of September" [2025] for electric vehicle sales, said Laura Perrotta, president of the New Jersey Coalition of Automatize Retailers, or NJCAR, a car dealership trade group
How to claim solar tax credits
.....For home solar instation, you must "purchase, installs and use" the solar panes, the Internal Revenue Service says. While not required, you're recommended to retain purchase receipts and instation records, according to the IRS.
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When filing your year taxes, you need to file a specific from related to residential energy credits, the IRS says.
..... But the confusion comes with whether the tax credit applies to construction done in 2025, or if the panels have to be placed into service in 2025, said Panagioutou of Infinity Energy.
..... Since they must be in sue to obtain the credit, consider when installing them that it could take between 60 and 90 days, given the permitting process with the state and red tape with the utility companies.
How to claim federal EV credits
..... The eligibility requirement for electric vehicle purchases vary based on income level and the cost and type of the electric car, according to personal finance website NerdWallet.
..... For example, the tax credit is limited to vehicles costing up to $80,000 and manufactured in North America, and to single filers making up to $150,000 or joint filers making up to $300,000.
..... You can either transfer the credit to the car dealer and claim the discount immediately or take the credit when you file your tax return, according to the IRS.
..... The IRS says to get a "time-of-sale report" with information about your purchases including its eligibility for the tax credit.
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You then have to file a special form with your tax return, known as form 8936.
..... New Jersey businesses and utilities produce nearly 5,626 megawatts of solar energy with the expectation for another 2,971 megawatts over the next five years, according to a June 2025 report by the Solar Energy Industries Association.
..... And there are many clean energy and energy efficiency programs run by the state.
..... For example. the state runs the Successor Solar Incentive Program, which offers an $85 credit every megawatt hour of solar energy produced by a home over a 15-year-period.
..... The state also offers $2,000 or $4,000 rebates for electric car purchases
.....North Jersey utility companies PSE&G, JCP&L and Rockland Electric - all offer energy efficiency rebates meant to entice customers to buy products that use less electricity, said Alonza Roberson, a spokesperson for the New Jersey Board of Public Utilities, a state regulatory body.
..... PSE&G for example, effectively buys back surplus solar energy produced by homes in what is called its net energy metering program.
..... "These programs are independent of any state or federal tax credits," said JCP&L spokesperson Christopher Hoenig.