Not Just for Billionaires: Beat the Big Beautiful Bell to 2025’s Best Tax Breaks
- The Richuel Team
- Jul 21
- 4 min read
Updated: Aug 19
Picture this: The Big Beautiful Bell just tolled, and the starting gun has fired on the 2025 Tax Credit Relay. You don’t need a billionaire’s bank account—to sprint for savings. This is your chance to win big before the finish line.
The race? It’s a limited-time Olympic dash for federal perks on electric vehicles, home improvements, and those juicy state and local tax (SALT) deductions. The competition? Every other American who just realized these benefits are about to vanish. Ready to claim your spot? Here’s your 3-step playbook for grabbing the gold before the bell rings again.
1. The Great EV Tax Credit Grab: $7,500 for New, $4,000 for Used
Why let billionaires have all the fun? You can pocket up to $7,500 for a new electric ride or $4,000 for a used one—if you act fast before it expires and follow the rules.
How to Score the EV Credits
New EVs:
Up to $7,500 off your taxes.
Vehicle price cap: $55,000 (cars), $80,000 (SUVs/trucks).
Income limits:
Single: $150,000
Married: $300,000
Head of Household: $225,000
No income limits if you lease from a dealer who takes the $7,500 and passes the savings to you.
Used EVs:
Up to $4,000 (or 30% of price, whichever is less).
Vehicle price: $25,000 or less, at least 2 years old.
Income limits:
Married: $150,000
Head of Household: $112,500
Others: $75,000
Don't qualify for the income limits? Some get around that by putting their retired parent with limited income on the title (not naming names).
Deadline:
Buy and take delivery by September 30, 2025. Don’t just order—get that car in your driveway!
Bonus Tip:
You can transfer the credit to the dealer for instant savings (if you qualify).
Not all EVs are eligible—check the IRS or manufacturer list before signing.
2. Home Improvement & Solar: The Last Hurrah for Climate Credits
Ready to upgrade your home and save money? Uncle Sam’s green giveaways are ending soon—don’t miss out!
Solar Panels & Wind Turbines:
Install and place in service by December 31, 2025 for the federal credit.
Solar electric (not water heating) can qualify if construction starts before year-end.
Home Energy Upgrades:
Windows, insulation, heat pumps, doors, efficient HVAC—all must be installed by December 31, 2025.
Save every receipt and get certifications for your records.
Other Clean Energy Perks:
Hydrogen, carbon capture, and clean fuels: construction must begin by end of 2025 or 2027 (depending on tech).
State & Local Bonuses:
Check for extra rebates in your area—some may last longer than federal ones.
Foreign Entity Alert:
Make sure your contractor/equipment isn’t tied to restricted foreign entities (like certain Chinese companies), or you could lose the credit.
3. SALT Tax Deduction & Mortgage Interest: Double Win for Homeowners
Live in a high-tax state or own a home? This year’s tax rules are serving up a rare combo platter: a much bigger SALT deduction and the classic mortgage interest deduction—both of which can help you keep more money in your pocket.
How to Max Out SALT and Mortgage Interest Deductions
SALT Deduction (State and Local Taxes):
The cap is now $40,000 for most filers (up from $10,000), if your income is under $500,000. Above that, the cap phases down but still applies.
Includes property taxes, state income taxes, and local sales taxes.
Married filing separately? Your cap is $20,000.
This higher cap is temporary, so take advantage before it drops back in 2030.
Mortgage Interest Deduction:
You can still deduct interest on up to $750,000 of qualified mortgage debt for your main (or a second) home.
This cap is now permanent—no more guessing if it will revert to $1 million.
To qualify, you must itemize your deductions (not take the standard deduction).
Home equity loan interest is deductible only if the funds are used to substantially improve the home or for qualified business expenses.
Why This Matters:
The higher SALT cap makes it much more likely that your total itemized deductions (SALT + mortgage interest + other eligible expenses) will exceed the standard deduction, especially in high-tax states.
This means more homeowners can benefit from both deductions, reducing their federal tax bill.
Action Steps:
Itemize if possible: If your combined SALT, mortgage interest, and other deductions top the standard deduction--which is now more likely---itemizing could save you thousands.
Prepay property and state taxes: Pay before year-end to maximize your 2025 deduction.
Track mortgage interest: Make sure your loan use qualifies and keep all documentation.
Bottom Line:
With the Big Beautiful Bill’s much higher $40K SALT cap and the still-available mortgage interest deduction, 2025 is a banner year for homeowners who itemize. Don’t let these savings slip away—act before the window closes!
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