By Income Tax Service Editorial — Reviewed by Diyan Yap, EA (IRS Enrolled Agent) — Updated July 19, 2026
Quick answer: The two main home energy tax credits ended after December 31, 2025. The Energy Efficient Home Improvement Credit (§25C) does not apply to property placed in service after that date, and the Residential Clean Energy Credit (§25D, solar) does not apply to expenditures made after it. You can still claim qualifying 2025 spending on your 2025 return.
Key facts:
- The Energy Efficient Home Improvement Credit (§25C) is gone for property placed in service after December 31, 2025
- The Residential Clean Energy Credit (§25D) — the solar credit — is gone for expenditures after December 31, 2025
- Both were repealed early by the One Big Beautiful Bill Act (OBBBA)
- 2025 spending still counts: qualifying costs incurred in 2025 can be claimed on your 2025 return
- For work done in 2026 and later, there is no federal home energy credit
These credits used to reward homeowners for solar panels, heat pumps, insulation, and efficient windows and doors. For anything installed in 2026, that federal reward is no longer available.
Can you still claim home energy credits in 2026?
No — not for work done in 2026. Both major home energy credits were ended by OBBBA effective at the close of 2025, so improvements placed in service or paid for in 2026 do not earn a federal credit. This is a real change from prior years, when these credits ran well into the future before OBBBA pulled the dates forward.
There is one important exception based on when the money was spent. If you paid for and installed qualifying improvements during 2025, that spending is claimed on your 2025 return — the return most people file in early 2026. The credits didn’t vanish retroactively; they simply stopped applying to new 2026 work.
So the practical line is the calendar. Work finished by December 31, 2025 may still qualify on the 2025 return. Work done in 2026 does not.
Which credits ended, and when?
Two separate credits ended, each with its own cutoff rule. The distinction matters because one is tied to when property is placed in service and the other to when an expenditure is made.
| Credit | Covered | Cutoff under OBBBA |
|---|---|---|
| Energy Efficient Home Improvement Credit (§25C) | Insulation, exterior doors and windows, efficient heating and cooling, home energy audits | Not allowed for property placed in service after Dec 31, 2025 |
| Residential Clean Energy Credit (§25D) | Solar panels, solar water heating, and similar residential clean-energy systems | Not allowed for expenditures after Dec 31, 2025 |
Both credits were previously scheduled to last much longer. OBBBA moved the end dates up, so 2025 became the final year either one applies.
How do you claim qualifying 2025 spending?
You claim 2025 energy improvements on your 2025 federal return, following the normal rules that applied for the 2025 tax year. The key is that the work has to meet the timing test: for the §25C credit the property must be placed in service in 2025, and for the §25D solar credit the expenditure must be made in 2025.
Keep your paperwork. That means dated invoices, proof of payment, and manufacturer certifications or product information showing the item qualified. If you installed solar or a heat pump late in 2025, confirm the in-service or payment date lands on or before December 31, 2025 — a system energized in January 2026 falls on the wrong side of the line.
If you already filed your 2025 return and left off a credit you qualified for, an amended return is the usual path to correct it. A credentialed preparer can tell you whether amending is worth it in your case.
What does the timing cutoff look like in practice?
The cutoff rewards homeowners who finished in 2025 and offers nothing to identical work done weeks later in 2026. Consider two neighbors who each install rooftop solar.
- Neighbor A signs the contract, pays, and has the system placed in service on December 20, 2025. Because the expenditure and installation both fall in 2025, the work is evaluated under the 2025 rules and is claimed on the 2025 return.
- Neighbor B signs an identical contract but the system is paid for and switched on January 12, 2026. Because the expenditure is after December 31, 2025, the Residential Clean Energy Credit does not apply. There is no federal credit for Neighbor B’s system.
Same panels, same price, same street — and the only difference that matters for the federal credit is which side of December 31, 2025 the money and installation landed on.
What’s left for homeowners in 2026?
With the energy credits gone, the OBBBA tax breaks still available to households in 2026 are elsewhere in the code. The most relevant for many families is the new car loan interest deduction, which lets qualifying buyers of U.S.-assembled vehicles deduct up to $10,000 of interest per year on a loan that originated after December 31, 2024. It has nothing to do with your house, but it is one of the few new personal deductions OBBBA created — see our guide on what car buyers should know now.
Beyond that, homeowners still benefit from the ordinary parts of the code: mortgage interest and property taxes remain deductible for itemizers, and the higher standard deduction continues to shelter income for everyone else. Our 2026 brackets and standard deduction guide walks through those numbers.
What should you do now?
If home energy improvements are on your mind, here is where to focus:
- Nail down your 2025 dates. If you did qualifying work in 2025, gather invoices and proof of the in-service or payment date, and make sure the 2025 credit gets claimed on your 2025 return.
- Don’t count on a 2026 credit. If you’re budgeting a 2026 solar install or heat pump, plan as if there is no federal credit — because there isn’t one.
- Check for state and utility programs. Federal credits ended, but some state and local rebates are separate. Those are outside the federal tax code and this guide, so check your state and utility directly.
- Amend if you missed it. If you already filed 2025 and forgot a credit you earned, ask a preparer whether an amended return makes sense.
A credentialed tax professional — like an IRS Enrolled Agent — can confirm whether your 2025 spending qualifies and whether amending is worth the effort.
FAQ
I heard the solar tax credit was supposed to last for years. Why is it gone? The Residential Clean Energy Credit was originally scheduled to continue well beyond 2025, but the One Big Beautiful Bill Act moved its end date up. Expenditures after December 31, 2025 no longer qualify, so 2025 was the last year for the solar credit.
I installed a heat pump in November 2025. Did I lose the credit? No. The Energy Efficient Home Improvement Credit applies to property placed in service on or before December 31, 2025, so a heat pump placed in service in November 2025 is evaluated under the 2025 rules and claimed on your 2025 return. Keep your invoice and the in-service date.
My solar panels were paid for in 2025 but turned on in 2026. Which year counts? For the §25D solar credit the rule is the timing of the expenditure. If the payment was made after December 31, 2025, it does not qualify — but a 2025 expenditure is evaluated under the 2025 rules. Because these dates decide real dollars, confirm your exact payment date with your installer and preparer.
Can I combine an energy credit with other 2026 tax breaks? For 2026 work there is no federal energy credit to combine with anything. For 2025 work, the credit is claimed on the 2025 return alongside your other 2025 items. Unrelated new breaks, like the car loan interest deduction, follow their own separate rules.
Is it too late to claim a 2025 energy credit if I already filed? Not necessarily. If you already filed your 2025 return without a credit you qualified for, you can generally correct it with an amended return. Ask a preparer whether the credit is large enough to make amending worthwhile.
Sources
- IRS: One Big Beautiful Bill provisions for individuals and workers
- IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments
This article is for educational purposes only and is not tax, legal, or financial advice. Tax rules change and individual situations vary — consult a qualified tax professional about your specific circumstances.