The clean energy incentive landscape changed dramatically in 2025. The Inflation Reduction Act (IRA) originally offered some of the most generous incentives in U.S. history — but the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, terminated most of the big federal tax credits early. Here's an honest, updated breakdown of what's actually still available in 2026.
Federal Tax Credits: What Expired
The OBBBA accelerated the termination of several IRA-era tax credits well ahead of their original 2032–2034 end dates. These credits no longer apply to anything installed or purchased in 2026:
Residential Clean Energy Credit (Solar, Wind, Batteries) — Expired Dec 31, 2025
This 30% credit used to apply to solar panels, small wind turbines, battery storage, geothermal heat pumps, and fuel cells, with no dollar cap. It's gone for anything placed in service in 2026 or later. If your system was installed and operational by the end of 2025, you can still claim it on your 2025 return.
Energy Efficient Home Improvement Credit (Heat Pumps, Insulation, Windows) — Expired Dec 31, 2025
This credit used to cover heat pumps, heat pump water heaters, insulation, windows, doors, and home energy audits at 30%, up to $3,200/year combined. Like the residential clean energy credit, it does not apply to equipment placed in service after December 31, 2025. Interestingly, early 2026 shipment data suggests this hasn't dented heat pump demand much — see why heat pump sales haven't dropped.
Clean Vehicle Credits — Expired Sept 30, 2025
The federal credits of up to $7,500 for new EVs and $4,000 for used EVs are no longer available for vehicles acquired after September 30, 2025 (with narrow exceptions for binding contracts signed before that date). The remaining federal EV incentive worth checking is the home EV charger credit (Section 30C), which applies to qualifying charging equipment placed in service before July 1, 2026, in eligible census tracts.
What's Still Available: HOMES and HEEHRA Rebates
Unlike the tax credits above, the IRA's HOMES and HEEHRA rebate programs were separately appropriated and survived the OBBBA — they're still rolling out state by state in 2026. Unlike tax credits, rebates are available regardless of tax liability — making them particularly valuable for lower-income households.
HOMES Rebates (Home Owner Managing Energy Savings)
HOMES rebates are based on measured energy savings from whole-home efficiency improvements. Savings of 20–35% qualify for up to $2,000 in rebates; savings above 35% qualify for up to $4,000. Low- and moderate-income households qualify for up to double these amounts.
HEEHRA (High-Efficiency Electric Home Rebate Act)
HEEHRA provides point-of-sale rebates for specific equipment for households at or below 150% of area median income:
- Heat pump water heater: up to $1,750
- Heat pump (space heating/cooling): up to $8,000
- Electric stove/cooktop: up to $840
- Heat pump clothes dryer: up to $840
- Insulation, air sealing, ventilation: up to $1,600
- Electrical panel upgrade: up to $4,000
- Wiring upgrades: up to $2,500
State-Level Incentives
State incentives vary widely. The most comprehensive resource is the Database of State Incentives for Renewables & Efficiency (DSIRE) at dsireusa.org — enter your zip code to see every program available in your area.
States With the Strongest Additional Incentives
New York: 25% state solar tax credit (up to $5,000), sales tax exemption on solar equipment, property tax exemption for 15 years on added home value from solar.
Massachusetts: 15% state solar tax credit (up to $1,000), SMART Program feed-in tariff, sales and property tax exemptions.
California: Property tax exemption for solar installations. Net metering credits for excess solar generation (rates changed under NEM 3.0 — verify current terms with your utility).
Maryland: State solar grant program (up to $1,000), sales tax exemption, property tax exemption.
Texas: Property tax exemption on added home value from solar. No state income tax means there's no state solar tax credit either, so with the federal credit also gone, incentives here are mainly local utility programs and the property tax exemption.
Utility Rebates and Programs
Many electric utilities offer their own rebates and programs separate from state and federal incentives. Common offerings include:
- Smart thermostat rebates ($25–100)
- Heat pump water heater rebates ($200–600)
- Home energy audit programs (free or subsidized)
- Time-of-use rate plans that reward off-peak charging
- Net metering for solar — credits for excess electricity sent to the grid
Check your utility's website under "rebates," "efficiency programs," or "green energy" — many programs are underutilized because they're poorly advertised.
Making the Most of What's Left
With the big federal tax credits gone, the opportunity in 2026 is combining state, utility, and HOMES/HEEHRA incentives. For example, a heat pump installation in New York could still qualify for a New York State income tax credit plus a utility rebate plus a HOMES or HEEHRA rebate if income-eligible — potentially covering a meaningful share of the total cost even without the expired federal credit. A solar installation in Massachusetts can still combine the 25% state credit, the SMART feed-in tariff, and property/sales tax exemptions.
Use our Solar Panel ROI Calculator or Green Home Upgrade ROI Calculator to model the payback period after factoring in the incentives still available to you.