Energy Tax Credits in 2026: What Ended, What You Can Still Claim
The 25C and 25D home energy tax credits ended after 2025. Here is what you can still claim on a 2025 return and what help remains for 2026 upgrades.
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Short answer
Federal Home Energy Rebates are run by states, and only some have launched. As of NASEO's September 30, 2026 update, 8 states and DC had HOMES programs and 13 states and DC had HEEHR (HEAR) programs. Rules tightened in 2026, so check your state energy office page before you buy.
Home energy rebates by state are now the main federal help for home upgrades, because the federal 25C and 25D tax credits ended for work done after 2025. The money comes from Washington, but each state decides whether to run a program, who qualifies and how much it pays. This guide shows which states had launched as of the National Association of State Energy Officials (NASEO) update of September 30, 2026, what changed in 2026, and how to find and apply for your state’s program.
The Home Energy Rebates are two federal programs created by the Inflation Reduction Act and funded with $8.8 billion. The U.S. Department of Energy (DOE) gives the money to states, and states run the programs. Homeowners do not apply to DOE. You apply through your state’s program, often with an approved contractor.
The two programs work differently:
| Feature | HOMES (Sec. 50121) | HEEHR, often called HEAR (Sec. 50122) |
|---|---|---|
| Full name | Home Owner Managing Energy Savings | High-Efficiency Electric Home Rebate |
| Funding (approx.) | $4.3 billion | $4.5 billion |
| How it pays | Based on whole-home energy savings, modeled or measured | Fixed rebates for specific equipment and upgrades, often at point of sale |
| Federal maximum | Up to $8,000 per household; states may raise it for households under 80% of area median income | Up to $14,000 per household |
| Savings test | Modeled pathway needs at least 20% modeled savings; measured pathway rewards at least 15% measured savings | No whole-home savings test |
| Who qualifies | All income levels | Low- and moderate-income households |
DOE’s Home Energy Rebates page confirms the up-to-$8,000 and up-to-$14,000 figures. It also tells homeowners to contact their state or territory energy office for status and eligibility.
The original law set maximum HEEHR amounts for each upgrade. These are statutory maximums. Your state’s program sets the actual amounts, and some states pay less or limit which items qualify.
| Upgrade | Statutory maximum |
|---|---|
| Heat pump for space heating and cooling | $8,000 |
| Electrical panel upgrade | $4,000 |
| Electrical wiring | $2,500 |
| Heat pump water heater | $1,750 |
| Insulation, air sealing and ventilation | $1,600 |
| Electric stove, cooktop, range, oven or heat pump clothes dryer | $840 |
| Total per household | $14,000 |
Under the statute, households under 80% of AMI could get up to 100% of project costs covered, within the caps. Households between 80% and 150% of AMI could get up to 50%. Households above 150% of AMI do not qualify for HEEHR.
DOE rewrote the HEEHR rules in 2026. Program Notice 26-2 took effect May 29, 2026, and was announced June 1, 2026. The biggest change: HEEHR no longer pays to switch from gas, oil, propane or other fossil fuels to electric equipment. Heat pump rebates now go mainly to homes that already heat with electricity.
The main changes reported by DOE-funded state programs and news coverage:
North Carolina’s page also says electric-to-electric upgrades are now allowed, so a household with old electric resistance heat or an old electric water heater may still qualify for a more efficient electric model.
As of NASEO’s tracker, last updated September 30, 2026, 8 states and the District of Columbia had launched HOMES programs, and 13 states and DC had launched HEEHR programs. The table lists launch dates as reported by NASEO, with links to the official program pages. Launched does not mean funds are still available today.
| State | HOMES launch | HEEHR (HEAR) launch | Program / administrator | Official page |
|---|---|---|---|---|
| Arizona | Not listed | August 2024 | Efficiency Arizona | efficiencyarizona.com |
| California | Not listed | October 2024 | TECH Clean California (California Energy Commission) | energy.ca.gov |
| Colorado | Not listed | October 2024 | Colorado Energy Office (contractor network or Weatherization Assistance Program) | energyoffice.colorado.gov |
| District of Columbia | November 2024 | November 2024 | Affordable Housing Retrofit Accelerator (HOMES, multifamily); Affordable Home Electrification Program (HEEHR) | doee.dc.gov |
| Georgia | November 2024 | November 2024 | Georgia’s state program (contractor and DIY pathways) | energyrebates.georgia.gov |
| Indiana | May 2025 | May 2025 | Indiana Energy Saver | indianaenergysaver.com |
| Maine | Not listed | July 2024 | Efficiency Maine | maine.gov/energy |
| Michigan | October 2024 | October 2024 | Michigan EGLE, funds split across 10 regions | michigan.gov/egle |
| New Mexico | Not listed | September 2024 | New Mexico Energy, Minerals and Natural Resources Dept. | clean.energy.nm.gov |
| New York | NYC multifamily (REDi), no date listed | May 2024 | NYSERDA EmPower+ | nyserda.ny.gov |
| North Carolina | January 2025 | January 2025 | Energy Saver North Carolina | energysavernc.org |
| Rhode Island | September 2026 | September 2024 | Rhode Island Office of Energy Resources, with Community Action Partnerships | HOMES, HEAR |
| West Virginia | August 2026 (pilot) | September 2026 | West Virginia Office of Energy, with Community Action Agencies | energywv.org |
| Wisconsin | August 2024 | December 2024 | Focus on Energy | focusonenergy.com |
Source: NASEO Home Energy Rebates tracker, last updated September 30, 2026.
Some programs have run through their funding or paused new applications. A state appearing in this table does not guarantee money is available on the day you apply.
The fastest route is your state energy office. Every state has one, and NASEO keeps a directory of state energy offices. If your state is not in the table above, its energy office page will say whether a program is planned, paused or not offered, and many offer email sign-ups for launch alerts.
Follow these steps:
Most state programs follow a similar path. You confirm eligibility, often by uploading proof of income or showing enrollment in a qualifying benefit program. Then an approved contractor assesses your home, proposes work, and applies the rebate as a discount on your invoice. You rarely buy first and apply later.
A typical process looks like this:
North Carolina tells applicants that they do not need to figure out insulation or air sealing needs themselves during the application. The contractor and program team explain which upgrades are possible. Our home energy audit guide explains what a good assessment includes.
You still have options. Utilities, state programs and income-based programs continue regardless of the federal rebate status. These often cover the same upgrades, such as insulation, air sealing, heat pump water heaters and smart thermostats, and some can be combined with each other.
Federal tax credits are not an option for 2026 work. Our 2026 energy tax credit guide explains what ended and what can still be claimed for 2025 projects.
Home Energy Rebates are real money, but they depend entirely on where you live and when you apply. As of NASEO’s September 30, 2026 update, 13 states and DC had launched at least one program. The 2026 rules ended HEEHR fuel-switching rebates and put insulation and air sealing first. Check your state energy office page for current status, use only approved contractors, and get the rebate amount in writing before work starts. This is general information, not financial or legal advice. Confirm eligibility with your state program.
It depends on your state and the date you check. As of NASEO's September 30, 2026 update, launched programs were listed for Arizona, California, Colorado, the District of Columbia, Georgia, Indiana, Maine, Michigan, New Mexico, New York, North Carolina, Rhode Island, West Virginia and Wisconsin. Even in those states, money can run out or a program can pause. Your state energy office page has the current status.
HOMES pays based on how much energy your whole home saves, either modeled or measured, and is open to all income levels. HEAR is the name many states use for the High-Efficiency Electric Home Rebate (HEEHR) program. It pays fixed rebates for specific electric equipment and home upgrades, and it is limited to low- and moderate-income households. Some states run both.
Usually not under HEEHR. DOE Program Notice 26-2, effective May 29, 2026, ended HEEHR funding for switching from fossil fuels to electric. Heat pump rebates under HEEHR now go to homes that already heat with electricity or to new construction. HOMES rules and utility programs differ, so ask your state program and your utility what applies to your home. Do not remove working equipment until you have the program's approval in writing.
Often, yes. Under the 2026 guidance, households generally must address insulation and air sealing before appliance rebates, unless the home already meets a level the state sets. North Carolina, for example, says insulation and air sealing may be required alongside a heat pump project. Your program's contractor or application team will tell you what your home needs. Insulation and air sealing often cut bills on their own, so this step can pay off even before new equipment.
For HEEHR, the original law set income limits based on area median income (AMI): households under 80% of AMI could get up to 100% of costs covered, and households between 80% and 150% of AMI up to 50%, within the caps. HOMES is open to all incomes, with larger rebates for lower-income households. Your state publishes its own AMI table or calculator.
States had to apply to DOE, get plans approved and hire administrators, and that takes time. DOE then changed the rules in 2026, so several states had to redesign programs. Some states chose not to participate. Check your state energy office website or sign up for its email updates to hear when applications open. In the meantime, utility rebates and the Weatherization Assistance Program may still help.
This article cannot give tax advice. Rebates paid at the point of sale usually lower the price you pay rather than arriving as cash, but tax treatment can depend on how a program is structured. Ask your state program for any tax guidance it publishes, and confirm with a tax professional before you file. Keep the program's approval letter and final invoice with your tax records.
In many states, yes, with conditions. Some programs let renters apply for portable appliances or allow landlords to apply for rental units, and several require landlord permission for work on the building. West Virginia's program, for example, explains how renters can take part with landlord approval. Read your state's eligibility page for the exact rules. Ask the program what documents a renter needs before you apply.
Use only links from your state energy office or NASEO's tracker, never links from unsolicited calls, texts or door-to-door sellers. Real programs do not charge a fee to apply. Many states require you to use a contractor from an approved list, so check that list yourself. If something feels off, call your state energy office directly. Never give your Social Security number or bank details to someone who contacted you first.
Start with your electric and gas utility, which may offer rebates on heat pumps, insulation, thermostats and audits. The Database of State Incentives for Renewables & Efficiency (DSIRE) lists many state and utility programs. If your income is limited, the Weatherization Assistance Program can provide free upgrades. Your state energy office may also run its own programs that are separate from the federal rebates, so check its website for anything open now.
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