Home improvement tax credits and rebates in 2026
If you read an older article promising a 30% federal credit on solar or a $2,000 credit on a heat pump, those deals ended on December 31, 2025. Two federal home-energy credits expired and were not renewed. Here's exactly what changed, what you can still claim in 2026, and how to track down the rebates that are easy to miss.
Key takeaways
- Two federal credits expired after 2025: the Energy Efficient Home Improvement Credit (Section 25C) and the Residential Clean Energy Credit (Section 25D).
- The 25C credit covered windows, doors, insulation, central air, furnaces, and heat pumps; it is gone for anything placed in service after December 31, 2025.
- The 25D credit was the 30% credit for solar, battery storage, and geothermal; it is gone for anything installed after December 31, 2025.
- For 2026, your savings come from utility rebates, state energy programs, and manufacturer promotions, not a federal credit.
- Check DSIRE and your own utility before you sign, and get any rebate confirmed in writing, since many require pre-approval.
What expired at the end of 2025
Two separate federal credits drove most home-energy incentives, and the 2025 budget law (the One Big Beautiful Bill) ended both early. The cutoff is firm: the IRS says the 25C credit is not allowed for property placed in service after December 31, 2025, and the 25D credit is not allowed for expenditures made after December 31, 2025, where an expenditure counts when the installation is finished. A project completed in 2026 gets neither credit, no matter when you paid the deposit.
| Credit | What it covered | Status for 2026 |
|---|---|---|
| 25C, Energy Efficient Home Improvement | Windows, doors, insulation, central AC, furnaces, heat pumps, energy audits | Expired after Dec 31, 2025 |
| 25D, Residential Clean Energy (30%) | Solar panels, battery storage, geothermal, solar water heating | Expired after Dec 31, 2025 |
What still saves you money in 2026
The federal credit is gone, but it was never the only money on the table. Three sources remain, and together they can still cut a project's cost meaningfully.
- Utility rebates: many electric and gas utilities still pay rebates for heat pumps, heat pump water heaters, insulation, smart thermostats, and efficient windows. These are funded by the utility, so the 2025 law did not touch them.
- State and local programs: some states run their own efficiency rebates and low-interest loan programs through a state energy office. Availability and funding windows vary widely by state.
- Manufacturer and installer promotions: seasonal rebates on specific equipment and financing offers can rival what a tax credit used to provide. Ask the installer what is running.
Solar and batteries: the 2026 wrinkle
The 30% residential credit that made solar and home batteries pencil out is gone, so a 2026 cash or loan buyer gets nothing from the federal government. One nuance remains: a third-party-owned system (a lease or power purchase agreement) is owned by the installer, who may still claim a business-side clean-energy credit and pass part of the value through as a lower rate. That credit is theirs, not yours, so treat any tax credit a salesperson quotes on a lease as the company's benefit, and read the contract before you sign.
How to claim what is left
- Look up your address in DSIRE, the national database of state and utility incentives, before you commit.
- Check your own utility's rebate page; the programs change a few times a year.
- Confirm any rebate in writing first; many require pre-approval before work starts and will deny a claim filed after the fact.
- Keep itemized receipts and equipment model numbers; rebate forms almost always ask for them.
Frequently asked questions
Is there a federal tax credit for a new HVAC system or windows in 2026?
Is there still a 30% solar tax credit in 2026?
Where do I find rebates that still exist?
Sources
See the numbers for your town
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Cost figures in this guide are modeled national ranges for general planning, not quotes. Local pricing varies, always get an on-site assessment from a licensed pro before you commit. Evergreen guide