Homeowners who got used to a menu of federal tax credits for solar panels, heat pumps, and efficiency upgrades need to recheck the list for 2026 — several of the most popular residential energy credits ended after 2025 under the One Big Beautiful Bill Act.
What ended after 2025
The Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit — which together covered items like solar panel installations, heat pumps, insulation, energy-efficient windows and doors, and home energy audits — were scheduled to expire after 2025 under the new law. A homeowner who completes a qualifying installation and has it placed in service by December 31, 2025 could generally still claim the credit; installations completed in 2026 generally cannot.
Why the timing catches people off guard
These credits often required the equipment to be 'placed in service,' not merely purchased or contracted for, by the deadline — a solar installation ordered in November but not fully installed and operational until January can miss the cutoff entirely. Anyone who started a qualifying project in late 2025 should confirm with their installer exactly when the system was placed in service, and keep that documentation.
What homeowners still have available in 2026
The core homeowner deductions discussed elsewhere on this site — mortgage interest, the now-much-higher SALT cap, and (starting in 2026) PMI — remain in place and are unaffected by the energy credit expirations, since they're structurally separate provisions. Some state-level energy incentives and utility company rebate programs also continue independently of federal law and are worth checking directly with your state energy office or utility provider.
What to check before assuming a project still qualifies
Because expiration dates and 'placed in service' rules vary by specific credit and equipment type, and because state-level programs change independently of federal law, verify the current status of any specific home improvement credit directly against IRS.gov or with a tax professional before making a purchase decision based on an expected federal tax credit.
Frequently asked questions
Can I still claim a credit for a solar system installed in 2025, filed on my 2025 return?
Generally yes, as long as the system was properly placed in service by the applicable 2025 deadline — the expiration affects installations completed starting in 2026, not the 2025 tax year itself.
Are electric vehicle tax credits affected too?
Electric vehicle credits were addressed separately under the same broader tax law changes and have their own distinct rules and timeline — check current guidance specifically for vehicle credits rather than assuming they follow the same schedule as home energy credits.
Do state energy tax credits or rebates still exist even though the federal ones ended?
Many states and utility companies maintain their own separate energy efficiency incentive programs regardless of federal tax law changes — check with your state energy office or utility provider directly.