OH Home Owner Tax Credits Ending Soon
It’s been less than a month since the One Big Beautiful Bill (OBBB) was signed into law. But it’s already shaking up the future of Ohio energy choice and it doesn’t look good. For example, the law will end energy efficiency tax credits by January 1. This may mean larger summer electric bills and higher winter gas bills. So Ohio homeowners need to know how this law could affect their energy bills. Let’s unpack what Ohio may see coming as a result of this new law.
End Of Ohio Tax Credits
For many homes and businesses, the energy tax credits were a welcome relief. Originally, homeowners could claim tax credits up to $3,200 for home energy upgrades made through 2032! The Clean Energy Credit also helped make home solar more affordable. Its tax credits cut up to 30% of costs for any project between 2022 and 2032.
However, the OBBB now cuts off programs. Now you can only claim credits for energy upgrades installed by December 31, 2025! Third party solar installations could serve as a theoretical loophole. However, recent executive orders may block these workarounds.
Additionally, the new law ends tax credits for buying EVs. Originally, you could earn credits if you purchased a new or used commercial EV. But now, you must purchase an EV before September 30 to qualify for a credit.
Finally there’s the Clean Electricity Production Credit. This 30% tax credit drove development of many wind farms and solar projects. However, the OBBB adds several tricky restrictions. It also ends tax credits for projects placed in service after December 31, 2027. This may cut off new solar and wind projects entirely!
Will This Affect Ohio Energy Prices?
The OBBB certainly will affect green energy in the future by cutting investment in clean energy. As a result, power developers will find it harder to bring new new renewable energy sources online.
Most of Ohio’s energy comes from natural gas fueled plants. By encouraging more gas plants, the law makes electric prices more susceptible to the natural gas pricing. In fact, one EIP&T study estimates that annual bills for all Ohio households could rise to $8.8B by 2034!
Some Ohio data centers pose a problem as they require as much as 600 megawatts (MW) of power. This is enough to power over 700 homes for a year! While new rules in Ohio allow for behind-the-meter generation, not all data center projects may follow along. This could leave Ohio short of cheap electricity and force providers to buy power from increasingly expensive power plants. This has already led to AES and Duke PTC prices jumping last month.
Finally, utility distribution charges have hiked up as well this past year. With Ohio seeing rising energy demand, utility grids will need more investment to make them more reliable. And that’s especially true during severe weather. That cost will pass on to customers, which means prices will go up.
Can OH Customers Save On Energy
You still have until the end of the year to make improvements and claim 2025 tax credits. However, after that, you will have to work harder to save energy on your wherever you can.
You can also shop the best electricity rates in town right here at https://www.ohenergyratings.com. We’ll also keep you up to date on the news that could affect your bills.