Home Energy Tax Credits: Status, History and Rebates

Current Status

The two federal home energy tax credits have ended. The residential clean energy credit (Section 25D), which covered rooftop solar, home batteries and geothermal, ended for expenditures after December 31, 2025. The energy efficient home improvement credit (Section 25C), which covered heat pumps, windows, doors and energy audits, ended for property placed in service after December 31, 2025. Both end dates come from the One Big Beautiful Bill Act (OBBBA, Public Law 119-21), signed July 4, 2025. Nothing replaced them for homeowners.

The Department of Energy (DOE) Home Energy Rebates, which are not tax credits, are active again under revised rules.

Program	Status	Key Date
Residential clean energy credit (25D)	Ended	Dec 31, 2025
Home improvement credit (25C)	Ended	Dec 31, 2025
New energy efficient home credit (45L)	Ended	Acquired by June 30, 2026
Home Energy Rebates (HEEHR, HOMES)	Active under revised rules	Guidance June 2026

What the Credits Were

Residential Clean Energy Credit (Section 25D)

25D covered 30% of the cost of installing solar, wind, fuel cells, geothermal or battery storage (over 3 kWh).

Energy Efficient Home Improvement Credit (Section 25C)

25C covered up to $2,000 for an electric or natural gas heat pump, heat pump water heater, or biomass stove or boiler. A separate $1,200 annual limit applied to other efficiency items:

$600 for exterior windows and skylights
$250 for an exterior door ($500 total for all exterior doors)
$150 for a home energy audit

New Energy Efficient Home Credit (Section 45L)

45L was a credit for builders of energy efficient homes. It ended for homes acquired after June 30, 2026.

Leased Solar

Third-party-owned (leased) residential solar goes through the clean electricity investment credit (Section 48E) rather than 25D. It is subject to the wind and solar cutoff: projects must have begun construction by July 4, 2026, or be placed in service by December 31, 2027. OBBBA also bars 48E for leased residential solar water heating and small wind property that would otherwise have qualified under 25D.

Home Energy Rebates

The High-Efficiency Electric Home Rebates (HEEHR, formerly HEEHRA) and Home Owner Managing Energy Savings (HOMES) programs were frozen in January 2025. In June 2026, DOE issued updated guidance and reopened the $8.8 billion in funding. Rollout varies by state.

Changes Under the Revised Rules

HEEHR no longer pays rebates for switching from gas, oil or propane to electric. Upgrades must be electric-to-electric or new construction.
HEEHR requires weatherization before heat pump funding.
HOMES state implementation plans and ENERGY STAR requirements are now optional.

Rebate Amounts at Launch

When HEEHR launched, households with income below 150% of area median income could receive up to these amounts. Check your state program for current amounts and eligibility:

$8,000 for a heat pump for space heating or cooling
$1,750 for a heat pump water heater
$840 for a stove, cooktop, range, oven or heat pump clothes dryer
$4,000 for an electric load service center upgrade
$2,500 for electric wiring
$1,600 for insulation, air sealing and ventilation

Key Dates

July 4, 2025: OBBBA signed.
December 31, 2025: 25C and 25D ended.
June 2026: DOE reopened Home Energy Rebates under revised guidance.
June 30, 2026: 45L ended for homes acquired after this date.
July 4, 2026: Construction-start deadline for leased solar to keep the 48E credit without the December 31, 2027 in-service limit.

Residential Clean Energy Tax Credits