Federal residential energy credits ended after 2025

What changed

The One Big Beautiful Bill Act accelerated the termination of several federal energy
incentives. The two residential home-energy credits covered on this site ended for
2026 work:

• Section 25C (Energy Efficient Home Improvement Credit): not allowed for any
  property placed in service after December 31, 2025.
• Section 25D (Residential Clean Energy Credit): not allowed for any expenditures
  made after December 31, 2025.

What it means

Homeowners planning 2026 solar, battery, heat-pump, or efficiency projects cannot count
on the federal 25C/25D credits. State rebates, utility incentives, and other programs
are separate and may still apply — check each program's own dates.

Sources

• IRS: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D
  under Public Law 119-21 (IR-2025-86, August 21, 2025)
• IRS: Home Energy Tax Credits page (checked August 16, 2026)