Federal Energy Incentives: What Changed, and What’s Left

Last reviewed August 14, 2026. Federal energy incentives change often — we re-check this page against the statutes and IRS guidance on a regular cycle. This page is general information, not tax advice; confirm your specific situation with a qualified tax professional.

Between 2022 and 2025, federal energy incentives went through a dramatic expansion and then a sharp rollback. The Inflation Reduction Act (2022) supercharged the tax credits and created new rebate programs; the One Big Beautiful Bill Act (2025) then ended most of them on an accelerated timeline. Here’s where things actually stand.

If you’re a homeowner

The federal tax credits for home energy are, for practical purposes, over:

  • §25C — Energy Efficient Home Improvement Credit (insulation, windows, doors, heat pumps, efficient HVAC, home energy audits): ended for anything placed in service after December 31, 2025. It had to be installed and running in 2025 — paying in 2025 for a 2026 installation does not qualify.
  • §25D — Residential Clean Energy Credit (rooftop solar, home battery storage, geothermal, small wind): ended for expenditures made after December 31, 2025 — this one keyed off when you paid, not when the system was switched on. Leased (third-party-owned) systems lost their credit support at the same time.
  • New and used EV credits (§30D, §25E): ended for vehicles acquired after September 30, 2025.
  • Home EV charger credit (§30C): now closed too — it does not apply to chargers placed in service after June 30, 2026 (and while it was available it was limited to homes in an eligible low-income or non-urban census tract).

What’s still there for you. The durable federal help now runs through your state, not your tax return:

  • DOE Home Energy Rebates (HOMES): performance rebates for whole-house efficiency retrofits — up to $2,000–$4,000 for most households, more for lower incomes — administered by your state energy office.
  • DOE Electrification Rebates (HEEHRA): point-of-sale rebates on heat pumps (up to $8,000), heat-pump water heaters, electric panels, insulation, and wiring — up to $14,000 per household — for low- and moderate-income households, through your state.
  • Your state and utility programs — NYSERDA, NJ Clean Energy, Mass Save, and your local utility — which are separate from federal money and are exactly what the rest of this site helps you find.
Availability of the DOE rebates depends on your state’s rollout — always confirm with the state program before you budget around them.

See the rebates available in your state →

If you’re a business or building owner

The commercial picture has narrowed as of mid-2026: the two biggest building incentives have closed to new projects, though work already under way by June 30, 2026 may still qualify.

  • §179D — Energy Efficient Commercial Buildings Deduction (efficient lighting, HVAC, envelope): closed to new projects — it no longer applies to property whose construction begins after June 30, 2026. A project already under construction by that date can still claim it (the deduction is taken when the building is placed in service). It was worth up to $2.50–$5.00 per square foot with prevailing-wage and apprenticeship requirements.
  • §45L — New Energy Efficient Home Credit (for builders and developers of efficient new homes): ended for homes acquired after June 30, 2026. Homes acquired on or before that date may still qualify.
  • §48E — Clean Electricity Investment Credit: wind and solar are sunsetting — a new wind or solar project starting construction now must be placed in service by December 31, 2027 to earn the credit (projects that began construction on or before mid-2026 are not subject to that deadline). Notably, standalone and co-located battery storage keeps the credit, which matters for commercial solar-plus-storage.
  • Direct Pay (§6417) and Transferability (§6418): the mechanisms that let tax-exempt owners (nonprofits, schools, municipalities) take a credit as cash, or let a business sell a credit it cannot use, both remain in place for the credits that survive.
These commercial timelines are technical — they turn on when construction started or when equipment was acquired, and they interact with IRS guidance. Confirm with a qualified tax professional before making a decision. If you have a project already under way — especially for §179D — it is worth checking whether it still qualifies. Get in touch.

The federal programs that fund your state’s help

A lot of what reaches you locally is funded by the Infrastructure Investment and Jobs Act (2021) — not as tax credits, but as grants to states and utilities: Weatherization Assistance (efficiency work for income-qualified households), efficiency revolving-loan funds, local block-grant rebate programs, and the EV-charging network. You reach these through your state energy office, utility, or a participating contractor — never by filing a federal form.

Here is the part that matters most: because so much federal money now flows through state and utility programs — and our rebate finder searches exactly those programs, for both homes and businesses — that federal support is already reflected in your results. You do not have to hunt for it separately. When you run the finder, the state and utility programs it surfaces already include what the federal government is funding behind the scenes.

Find the programs available where you are →

This page reflects the Inflation Reduction Act (2022), the Infrastructure Investment & Jobs Act (2021), and the One Big Beautiful Bill Act (2025), with dates verified against the U.S. Code. Because federal tax law is technical and changes, treat this as a well-researched starting point and confirm the details that apply to you with a qualified tax professional or at IRS.gov. Last reviewed: August 14, 2026.