Last reviewed: August 20, 2026. This guide reflects federal information available on that date. State, Tribal, utility, building-code, and program rules can differ by location.
The most important 2026 update is simple: two widely promoted federal residential energy tax credits ended for new 2026 work. Other assistance still exists, but availability depends heavily on location, income, program status, and approval timing.
Key takeaways
- Section 25C, the Energy Efficient Home Improvement Credit, is not allowed for property placed in service after December 31, 2025.
- Section 25D, the Residential Clean Energy Credit, is not allowed for expenditures made after December 31, 2025. For installation, IRS guidance generally treats the expenditure as made when original installation is completed.
- DOE Home Energy Rebates are administered by states, territories, and Tribes and are currently available only in select jurisdictions.
- Never assume a product qualifies. Confirm the address, household, measure, model, contractor, preapproval, and installation date with the administering program before signing.
What ended under current federal tax law
IRS guidance on Public Law 119-21 lists accelerated termination dates. The 25C home-improvement credit ended for property placed in service after December 31, 2025. The 25D residential clean-energy credit ended for expenditures after that date. IRS Publication 505 for 2026 likewise states that the credits for energy-efficient home improvements and residential clean-energy systems have expired and cannot be claimed on a 2026 return.
This makes older contractor pages, archived government pages, product labels, and search snippets potentially misleading. A page describing a 30% credit under prior law does not establish eligibility for a 2026 installation. A 2025 project or carryforward can involve different facts; use the relevant tax-year instructions and a qualified tax professional.
What DOE Home Energy Rebates may provide
The federal Home Energy Rebates framework includes two programs delivered through participating state, territory, or Tribal administrators:
- HOMES. DOE describes rebates for eligible whole-home projects at all income levels, based on modeled energy savings with a minimum 20% savings threshold. DOE states households may save up to $8,000, with program-specific rules and the possibility of increased amounts for households below 80% of area median income.
- HEEHR. DOE describes income-focused point-of-sale rebates for eligible electric appliances, heating and cooling, wiring, load-service-center upgrades, insulation, air sealing, and ventilation. DOE states the possible household total is up to $14,000, subject to eligibility and local program design.
Those figures are statutory program ceilings, not automatic checks. DOE says rebates are available in select states and directs households to the state or territory energy office for status and eligibility. Programs can pause, exhaust funds, limit measures, require approved contractors, or change workflows.
Weatherization and bill assistance
DOE’s Weatherization Assistance Program is administered at the state and local level. DOE guidelines consider households at or below 200% of federal poverty guidelines or receiving Supplemental Security Income eligible, while jurisdictions can apply permitted criteria and set priorities. Both homeowners and renters may apply, but local providers determine eligibility, waiting lists, audits, and work scopes.
The Low Income Home Energy Assistance Program helps eligible households with energy costs and is also locally administered. Eligibility and benefits vary by state, territory, and Tribe. Use the official local office rather than a paid enrollment service.
Utility, state, and local programs
Electric and gas utilities, public utility commissions, cities, counties, and state agencies may offer audits, financing, weatherization, demand-response payments, appliance recycling, or rebates. Rules can differ even between neighboring utility territories. A database or search result is a lead; the program administrator’s current terms control.
The correct order before purchase
- Identify the service address and utility accounts. Many programs are territory-specific.
- Check the official administrator. Confirm the program is open and funded on the date you apply.
- Confirm household eligibility. Ownership, tenancy, income, primary residence, building type, and prior rebates can matter.
- Confirm the exact measure and model. Efficiency levels, certifications, sizing, and approved product lists may apply.
- Ask whether preapproval is mandatory. Purchasing or starting work too early can disqualify a project.
- Confirm contractor requirements. Some programs require participating contractors, assessments, permits, or post-installation testing.
- Get incentive treatment in writing. Document rebate amount, assignment to a contractor, customer contribution, tax treatment, and payment timing.
- Keep records. Save applications, approvals, contracts, invoices, model and serial numbers, permits, commissioning reports, and proof of payment.
Avoid five common claims
- “Everyone gets the maximum.” Maximum amounts are not universal awards.
- “The federal 30% home-energy credit is still available in 2026.” Current IRS guidance says 25C and 25D expired for new 2026 qualifying activity.
- “Buy now and apply later.” Some programs require preapproval.
- “Every efficient model qualifies.” Programs can require exact specifications and approved lists.
- “The rebate makes the project free.” Uncovered work, electrical upgrades, remediation, permits, financing costs, and future maintenance can remain.
Build the project around safety, durability, comfort, and realistic operating savings first. Treat an incentive as confirmed only after the administering agency accepts the specific project.
This article provides general educational information, not tax, legal, engineering, or medical advice. Use licensed professionals where permits, combustion equipment, refrigerants, structural work, electricity, or contaminated water are involved.