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New windows or a heat pump will cost full price this winter. Two of the biggest home energy tax credits ended for 2026, according to the IRS Form 5695 instructions. Home energy tax credits still help one group of taxpayers: people with leftover credit from earlier years.
Home Energy Tax Credits That Ended After 2025
Which home energy tax credits are gone?
Two credits are gone. The first is the energy-efficient home improvement credit, which paid 30% of costs up to $1,200 a year. Heat pumps and heat pump water heaters had a separate $2,000 limit. The credit ends for property placed in service after December 31, 2025.
The second is the residential clean energy credit, which paid 30% for solar and similar systems. It ends for expenditures made after December 31, 2025. Both rules are in the Instructions for Form 5695.
Can you still use a leftover credit?
Yes, if you have one. Suppose you installed solar panels in 2025 and your tax bill was too small to use the whole credit. The unused part carries forward to later years. You track it on Form 5695.
What home energy help remains?
State rebates are the main help. The Department of Energy runs two programs through state energy offices, and the Home Energy Rebates page describes them.
HOMES pays up to $8,000 for whole-home upgrades that cut modeled energy use by at least 20%. The High-Efficiency Electric Home Rebate pays up to $14,000 at the point of sale. Both are offered in select states, so call your state energy office before you sign a contract. Utility programs are listed in the ENERGY STAR rebate finder.
Editor’s Take
A tax credit was simple. A rebate takes more work. Rules differ by state, income, and the equipment you buy. Some programs have not started yet. Get approval before you buy. Then add up the leftover credit, the rebates, and your utility’s offers. The home energy tax credits are a smaller piece now. For a lower bill this winter, our winter heating cost guide has cheaper fixes.
