Published: February 2026 · Updated: October 22, 2026
2026 Federal Energy Tax Credit Changes: What Ended and What Replaces It
The Inflation Reduction Act originally set the main home energy tax credits to run through 2032. The One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) ended them early. Here is what changed, based on the IRS's official FAQ.
Section 25C: Energy Efficient Home Improvement Credit
Ended for property placed in service after December 31, 2025. Heat pumps, insulation, windows, doors, panels and energy audits installed in 2023, 2024 or 2025 can still be claimed (30%, up to $3,200 per year) on IRS Form 5695 for the year of installation, including by amending a past return you missed. See our 25C guide.
Section 25D: Residential Clean Energy Credit
Ended for expenditures made after December 31, 2025. Solar, battery storage and geothermal systems completed by then still qualify for 30% with no dollar cap on your 2025 return. See our 25D guide.
Section 30C: EV Charger Tax Credit
Ended for property placed in service after June 30, 2026. Home chargers installed in eligible census tracts by that date can be claimed for 2026 (30%, up to $1,000). See our 30C guide.
What to Use Instead in 2026
- HEAR and HOMES rebates: federally funded, run by states, and open in only some states. HEAR can provide up to $14,000 for income-qualified households. Check our HEAR and HOMES guides for which states have launched.
- Utility rebates: many utilities still pay for heat pumps, heat pump water heaters, smart thermostats and insulation.
- State programs: state tax credits, rebates and sales or property tax exemptions (especially for solar). See your state page.
- Weatherization Assistance Program: free upgrades for income-eligible households.
Many of these programs require approval before you buy or start work, so check first.
Get Personalized Guidance
Ask our AI assistant about which rebates apply to your planned upgrades, or browse your state's rebate page for the full picture of available incentives.