Federal programs, state initiatives, and utility companies have set aside billions to reward homeowners who improve their homes’ efficiency. The best part? Many of these programs don’t care whether a licensed contractor or you did the work. Here’s what’s available and how to get it.

Two Ways Money Comes Back to You

A tax credit directly reduces the income tax you owe, dollar for dollar. Owe $2,000 and earn a $1,500 credit? You now owe $500. You claim these on your tax return using IRS Form 5695.

A rebate is cash back — deducted at point of sale, mailed afterward, or credited to your utility bill. Rebates require no tax liability, making them especially valuable for retirees and lower-income households.

Federal Tax Credits: Still Claimable for 2025 Work

Two major federal credits — created by the Inflation Reduction Act — ran through December 31, 2025. The One Big Beautiful Bill Act, signed July 4, 2025, ended both credits ahead of schedule. Qualifying work completed in 2025 can still be claimed on your 2025 return. Work done in 2026 is no longer eligible.

Energy Efficient Home Improvement Credit (Section 25C)

The workhorse credit for everyday DIY projects covered 30% of costs, up to $3,200 per year.

Eligible upgrades:

• Insulation and air sealing (up to $1,200)
• Windows and skylights (up to $600)
• Exterior doors (up to $500)
• Electrical panel upgrades (up to $600), and
• Heat pumps or heat pump water heaters (up to $2,000)

No income limit. The cap reset annually, rewarding renovators who spread work across multiple years. Nonrefundable — it can zero out your bill but won’t generate a refund check.

Residential Clean Energy Credit (Section 25D)

For solar panels, battery storage, geothermal heat pumps, and small wind turbines, the 25D credit offered 30% of total installed cost with no dollar cap.

A $20,000 solar-plus-battery system earned a $6,000 credit. Unused credit carried forward to future years. Like 25C, it expired after December 31, 2025.

IRA Rebates: Cash That’s Still Available in 2026

Congress ended the tax credits but left the IRA-funded rebate programs intact. Distributed as block grants to states, these programs are still launching and running — with more states coming online throughout 2026.

HEAR — Home Electrification and Appliance Rebates

HEAR provides point-of-sale rebates for households below 150% of the Area Median Income (AMI). Low-income households (under 80% AMI) can have 100% of upgrade costs covered; moderate-income households (80–150% AMI) receive up to 50% back.

Covered upgrades include heat pumps (up to $8,000), heat pump water heaters (up to $1,750), insulation and air sealing (up to $1,600), and electrical panel upgrades (up to $4,000), with a total household cap of $14,000.

States with active programs as of early 2026 include Arizona, California, Colorado, Georgia, Indiana, Maine, Michigan, New York, North Carolina, and Washington, with more launching throughout the year.

HOMES — Home Efficiency Rebates

Where HEAR rewards specific products, HOMES rewards whole-home energy performance. Cut overall energy use by 20–34% and earn up to $2,000 (50% of costs); hit 35%+ and that rises to $4,000 — or $8,000 for low-income households.

Ideal for DIYers tackling insulation, air sealing, HVAC, and windows in one season. A certified energy auditor documents the savings. Active states include Georgia, Indiana, Michigan, North Carolina, Wisconsin, and D.C.

State and Utility Incentives: An Extra Layer of Savings

State programs and utility rebates add a third tier most homeowners never look up. New York offers a 25% solar tax credit up to $5,000 plus a 15-year property tax exemption.

New Jersey’s SREC-II program pays solar owners roughly $680 per year for 15 years.

Maryland gives a 30% state credit on battery storage up to $5,000. Arizona, Massachusetts, South Carolina, and Utah offer state solar credits from 15% to 25%.

Most major utilities also offer cash rebates of $200–$2,000 for heat pumps, insulation, smart thermostats, and water heaters — no tax liability required, and fully stackable with other incentives.

How to Find Everything You Qualify For

Three free tools cover the search. DSIRE at dsireusa.org is the most comprehensive ZIP-searchable directory of state, local, and utility incentives.

ENERGY STAR’s Rebate Finder at energystar.gov/rebate-finder surfaces product-specific offers in your area.

Rewiring America’s calculator at homes.rewiringamerica.org/calculator estimates your HEAR eligibility and total savings in minutes.

The Bottom Line

The big federal credits are gone — but the savings landscape isn’t empty. IRA rebates are still being deployed, state programs are stronger than ever, and utility incentives exist in nearly every zip code.

Layer a HEAR rebate, a state credit, and a utility incentive and you can still recover 30% to 80% of the cost of a major upgrade.

The key is researching before you buy materials — a little homework can easily turn a $5,000 project into a $2,000 one.

Always confirm program eligibility with your state energy office, utility provider, and a qualified tax professional before starting any project.

🏠 U.S. Home Energy Incentives Guide: 2025–2026

Federal Credits, IRA Rebates, State Programs & Utility Incentives for DIY Homeowners

⚠️ CRITICAL 2025 LEGISLATIVE UPDATE: The “One Big Beautiful Bill Act” (OBBBA) was signed into law on July 4, 2025. It dramatically accelerated the end of IRA-era residential energy tax credits. Both major federal home energy tax credits (25C and 25D) expired after December 31, 2025 — earlier than originally planned. If you completed qualifying projects in 2025, you may still claim them on your 2025 tax return (filed in 2026). For new work done in 2026, these federal credits are gone. The IRA-funded rebate programs (HEAR & HOMES), however, were not eliminated by the OBBBA and continue rolling out through the states. IRS source

🔵 PART 1 — FEDERAL TAX CREDITS

Claimed on your federal income tax return (IRS Form 5695). Nonrefundable unless noted.

1️⃣ Energy Efficient Home Improvement Credit (Section 25C)

Type: 📄 Federal Tax Credit  |  Status: ✅ Available for 2025 installs / ❌ Expired for 2026+

This was the workhorse credit for DIY home upgrades — covering insulation, windows, doors, heat pumps, HVAC, and more. It allowed up to $3,200 per tax year at 30% of costs. Under the OBBBA, it was repealed after December 31, 2025.

📝 Key Rules: No income limit. Existing primary residence only (windows/doors/insulation). Rented or second homes excluded for those categories. Nonrefundable — credit cannot exceed your tax liability. No carryforward. Products must meet ENERGY STAR or CEE efficiency tiers. Starting 2025, manufacturer QM (Qualified Manufacturer) codes required on return.

IRS 25C Details | ENERGY STAR Federal Tax Credits

2️⃣ Residential Clean Energy Credit (Section 25D)

Type: 📄 Federal Tax Credit  |  Status: ✅ Available for 2025 installs / ❌ Expired for 2026+

This is the big solar credit — covering 30% of installation costs with no dollar cap. It also applies to battery storage, wind, and geothermal. Expired under OBBBA after December 31, 2025.

📝 Key Rules: No income limit. Primary home and second home qualify (fuel cells: primary only). Partially refundable via carryforward — if credit exceeds taxes owed, unused amount carries forward to future years. Includes labor/installation costs. Covers new AND existing homes. DIY installation of panels may qualify for equipment cost only (not labor you perform yourself).

IRS 25D Details | SEIA on 25D

🔑 2026 Solar Note: With the 30% federal credit gone, homeowners in 2026 who enter third-party ownership (TPO) arrangements like solar leases or PPAs can still benefit — the solar company claims the credit and passes savings through lower rates. However, you forfeit direct access to state/local incentives.

🟢 PART 2 — IRA-FUNDED FEDERAL REBATE PROGRAMS

Point-of-sale or application-based cash rebates. NOT eliminated by OBBBA. Administered by states — availability varies.

These programs were funded by the Inflation Reduction Act and distributed to states/territories. They continue operating as states roll them out. Check your state’s program directly — some are live, some launching in 2026.

3️⃣ HEAR Program — Home Electrification & Appliance Rebates

Type: 💰 Cash Rebate (point-of-sale or application)  |  Status: 🔄 Active in ~15+ states as of Feb 2026

Income-restricted: Only for households below 150% of Area Median Income (AMI)

States active as of December 2025: Arizona, California, Colorado, Georgia, Indiana, Maine, Michigan, New Mexico, New York, North Carolina, Wisconsin, Washington D.C., and Washington State. More launching through 2026.

Rewiring America HEAR Tracker | ENERGY STAR HEAR Program

4️⃣ HOMES Program — Home Efficiency Rebates (HER)

Type: 💰 Cash Rebate (performance-based)  |  Status: 🔄 Active in select states (GA, IN, MI, NC, WI, DC as of Dec 2025)

This whole-house program rewards measured or modeled energy savings, not specific equipment. No strict income requirement for base eligibility, but low-income households get larger rebates.

📝 Typical qualifying projects: Comprehensive insulation packages, air sealing + HVAC replacement, adding solar + battery, weatherization bundles, whole-house retrofits. A certified energy auditor or contractor typically documents savings to qualify.

Rewiring America HOMES Tracker | ENERGY STAR HOMES Program

🟡 PART 3 — STATE TAX CREDITS & INCENTIVES

Vary widely by state. Claimed on state income tax returns unless noted.

These remain active regardless of federal changes. Below are the most notable states:

⚡ PART 4 — UTILITY COMPANY REBATES

Cash rebates or bill credits from your electric/gas utility. Availability varies by provider.

Utility rebates are among the most overlooked savings for homeowners. They are cash rebates or bill credits, not tax credits, and are often stackable with state and federal incentives.

Common Utility Rebate Categories

Notable Utility Examples

• Austin Energy (TX): Up to $2,500 solar rebate
• AEP Texas: Up to $6,000 solar rebate
• Xcel Energy (CO/MN): $1/W solar rebate up to 7 kW
• PG&E / SCE / SDG&E (CA): SGIP battery rebates; income-qualified heat pump rebates
• BayREN (Bay Area, CA): Up to $4,250 additional for income-qualified heat pump upgrades
• Focus on Energy (WI): HEAR rebates active

🌐 PART 5 — NET METERING & PASSIVE INCENTIVES

These aren’t credits you claim on a return, but they significantly reduce the net cost of solar:

🔍 HOW TO FIND YOUR SPECIFIC INCENTIVES

Your exact savings depend heavily on location, income, and utility provider. Use these authoritative tools:

📋 QUICK REFERENCE SUMMARY TABLE

💡 Key Takeaways for 2026 and Beyond

1. The window for the two largest federal credits closed December 31, 2025. If you completed qualifying work in 2025, file IRS Form 5695 with your 2025 return to claim them.
2. IRA rebates (HEAR & HOMES) survived the OBBBA and are still rolling out. Check if your state has launched its program — many are still coming online through 2026.
3. State incentives are now more important than ever. New York, New Jersey, Massachusetts, Maryland, Illinois, and California remain particularly rich environments.
4. Utility rebates are underutilized — always check with your local utility before starting a project. Stack them with state programs for maximum savings.
5. Low-to-moderate income households should prioritize HEAR rebates — up to $14,000 in point-of-sale discounts with no tax liability required.
6. DSIRE.org is your best friend — it’s the definitive, ZIP-code-searchable database of every active incentive in your area.

Always verify current program availability with your state energy office, utility provider, and a qualified tax professional before beginning projects. Programs and funding levels change frequently.