They say all good things must come to an end. While we do not think of taxes as a good thing, tax credits certainly are as they reduce tax liability dollar for dollar. Several tax credits and deductions will be expiring soon. The following information will help you determine if any of these credits and deductions apply to you and the deadline (highlighted) by which action needs to be taken.

Home Energy Credits

The Energy Efficient Home Improvement Credit will not be allowed for any property placed in service after December 31, 2025.

The Residential Clean Energy Credit will not be allowed for any expenditures made after December 31, 2025.

To learn more about these credits and see if you qualify go to: https://magdaabdogomezlaw.com/home-energy-credits/

New Energy Efficient Home Credit

This credit of up to $5,000 may be available to contractors who meet eligibility requirements and build or substantially reconstruct qualified new energy efficient homes. The amount of the credit depends on requirements such as the type of home, the home’s energy efficiency and the date when someone buys or leases the home.

This credit will not be allowed for any qualified new energy efficient home acquired after June 30, 2026.

Energy Efficient Commercial Building Deduction

This deduction may be available to building owners who place in service energy efficient commercial building property (EECBP) or energy efficient commercial building retrofit property (EEBRP) who meet eligibility requirements. The deduction will not be allowed with respect to any property the construction of which begins after June 30, 2026.

Vehicle Credits

The previously-owned clean vehicle credit, the new clean vehicle credit and the qualified commercial clean vehicle credit have already expired.

Alternative Fuel Vehicle Refueling Property Credit

This credit is available to businesses and individuals who install qualified refueling or recharging property, including electric vehicle charging equipment, in an eligible location. To qualify for the credit, the property must be used to store or dispense clean-burning fuel or to recharge electric motor vehicles and must meet other eligibility requirements. For more information on what constitutes eligible property see: https://www.irs.gov/credits-deductions/alternative-fuel-vehicle-refueling-property-credit

The credit will not be allowed for any property placed in service after June 30, 2026.

Educational Assistance Programs

Through an educational assistance program an employer can assist employees with undergraduate and graduate student loan debt and other educational expenses. The payment may be made directly to the educational loan lender, the educational institution or to the employee. The payments made through the educational assistance program are tax free to the employee so long as the total amount paid during the year on behalf of the employee is $5,250 or less.

Employers who have educational assistance programs can continue to assist their employees up until December 31, 2025.

Work Opportunity Tax Credit

An employer may claim the work opportunity tax credit if it hires and pays wages to individuals who are in their first year of employment, perform at least 400 hours of service for the employer and are certified as being members of one of ten targeted groups. The groups consist of individuals who have faced barriers to employment such as veterans, and ex-felons. For the complete list of the qualifying groups see: https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit#targeted The maximum credit is generally $2,400.

The work opportunity tax credit will expire on December 31, 2025.

Now is the time to take action before these credits and deductions disappear.