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It’s a Saturday morning and you’re at the kitchen table with two contractor quotes, a cup of coffee and a nagging feeling that you’re leaving money on the table. Last year a neighbor got a big chunk back on her heat pump. Now you keep reading that the federal credits are gone. So is there anything left? Usually, yes. It just moved from your tax return to your state, your utility and sometimes your city.
In short: the federal home energy tax credits for solar, batteries, heat pumps and insulation ended for work completed after December 31, 2025. In 2026, home energy rebates come from state programs (including the federally funded HOMES and HEEHR rebates, live in some states), utilities and local governments. Search your ZIP code in the ENERGY STAR Rebate Finder and DSIRE, then call your utility and state energy office.
This page starts our Rebates and Incentives section: what changed in 2026, how rebates differ from tax credits, where the IRA home rebates stand, a step-by-step way to find every rebate you qualify for, and what to check before you sign. We explain the rules in plain language; this is not tax or legal advice. For your own situation, talk to a tax professional.
Home energy rebates in 2026 at a glance
- Federal tax credits for homes are over for new work: the 30% solar and battery credit (25D) and the heat pump and efficiency credit (25C) ended for work completed after December 31, 2025, according to the IRS.
- Rebates are a different thing. A rebate lowers the price you pay, often at the register or on the contractor’s invoice. You don’t need to owe tax to use one.
- The IRA Home Energy Rebates (HOMES and HEEHR) still exist, run by each state. The U.S. Department of Energy (DOE) says they are “now available in select states,” and it changed the rules for the HEEHR program in May 2026.
- Utilities are often the easiest money: smart thermostat rebates, heat pump and heat pump water heater rebates, home energy audits and payments for letting the utility nudge your thermostat on hot afternoons.
- Three free tools find most of it: the ENERGY STAR Rebate Finder, DSIRE and your state energy office.
- Never assume. Programs open, pause, change and run out of money. Get the rebate confirmed in writing before you buy.
What changed in 2026: the federal credits that ended
The 2025 budget law, Public Law 119-21 (often called the One Big Beautiful Bill Act), cut short the home energy tax credits that the Inflation Reduction Act had extended to 2032. The IRS published the new end dates in its August 2025 FAQs. Here they are side by side:
| Federal credit | What it covered | End date (IRS) |
|---|---|---|
| Residential Clean Energy Credit (section 25D) | Solar panels, solar water heaters, batteries of 3 kWh or more, geothermal heat pumps, small wind, fuel cells: 30% of cost | No credit for expenditures made after December 31, 2025 (an expenditure is “made” when installation is completed) |
| Energy Efficient Home Improvement Credit (section 25C) | Heat pumps, heat pump water heaters, insulation, windows, doors, energy audits: 30%, up to $3,200 a year | No credit for property placed in service after December 31, 2025 |
| New Clean Vehicle Credit (section 30D) | New EVs and plug-in hybrids | No credit for vehicles acquired after September 30, 2025 |
| Alternative Fuel Vehicle Refueling Property Credit (section 30C) | Home EV chargers in eligible areas | No credit for property placed in service after June 30, 2026 |
Two things did not end. First, if you finished a qualifying solar or battery installation by December 31, 2025, you claim the 25D credit on your 2025 tax return with Form 5695, and any part you can’t use carries forward to later years. Our guide to Form 5695 and the solar tax credit walks through it. Second, companies that own solar systems on homes (leases and power purchase agreements) can still use a separate business credit for a while longer; see the solar tax credit in 2026.
Each type of upgrade has its own story in 2026. We cover them one by one in the heat pump tax credit in 2026, the EV tax credit in 2026 and smart thermostat rebates.
Rebates, tax credits and incentives: what’s the difference?
People use these words loosely, and sellers sometimes blur them on purpose. Here’s the plain version:
- Rebate: money off the price, either instantly (at checkout or on the contractor’s bill) or mailed back after you send a form. It works whether or not you owe income tax.
- Tax credit: a cut in the income tax you owe. A nonrefundable credit, like the old 25D and 25C credits, can only bring your tax down to zero; it never becomes a refund check on its own.
- Performance payment: a utility pays you to let it adjust your thermostat, water heater, EV charger or home battery during peak hours. Often called demand response, “bring your own device” or a virtual power plant.
- Low-cost financing: state green banks, utility on-bill loans and similar programs. Not free money, but it can make a project affordable.
- Direct-install and free programs: for income-qualified households, an agency or utility does the work at no cost or reduced cost.
Rebates and taxes do interact. The IRS says a rebate from the seller, manufacturer or installer generally lowers the cost you can count toward a federal credit, and that a subsidy from a public utility for energy conservation must be subtracted too. It also warns that some state incentives labeled “rebates” may not count as rebates under federal tax law and could be taxable income. That mostly matters now for people finishing 2025 returns, but it’s a good reason to keep every rebate letter and ask a tax professional how to report it.
The IRA Home Energy Rebates (HOMES and HEEHR): status in 2026
The Inflation Reduction Act of 2022 created two rebate programs with $8.8 billion in total, paid out by states and territories rather than through tax returns. These were not part of the tax credits that ended, which is why you may still see them advertised in 2026.
- HOMES (Home Owner Managing Energy Savings) rebates: for whole-home upgrades that are modeled or measured to save energy. DOE says households can get up to $8,000, with a minimum savings of 20%. Amounts depend on income and on how much energy the project saves.
- HEEHR (High-Efficiency Electric Home Rebate) program: rebates for heat pumps, heat pump water heaters, electric panels, wiring, insulation and similar upgrades, up to $14,000 per household, for low- and moderate-income households. Until May 2026 many states called it HEAR (Home Electrification and Appliance Rebates); DOE switched back to the law’s name.
What we confirmed (October 2026)
Here is exactly what we could verify on government pages, and what we couldn’t:
- DOE’s program page says: “Home Energy Rebates are now available in select states.” It does not list which ones; it tells you to contact your state or territory energy office.
- DOE Program Notice 26-2, effective May 29, 2026, changed the HEEHR program for states. Rebates no longer cover switching from gas, oil or propane equipment to electric; they now cover upgrading existing electric equipment to more efficient electric equipment (new construction still qualifies). Homes may have to insulate and air-seal before a heat pump rebate, unless they already meet a state-set level. You can keep an existing fossil-fuel system alongside a new heat pump, and ENERGY STAR combination washer-dryers now count as heat pump dryers.
- Timing of those changes: the notice gives states that had already launched three months to update their programs. Approved rebate reservations under the old rules can still be paid, but no new reservations can be approved for projects that don’t fit the new rules. States that hadn’t launched must follow the new rules before they open.
- Wisconsin: Focus on Energy, the state’s program, says both HOMES and HEAR “are NOW AVAILABLE.” HOMES is open to all homeowners, with amounts based on income; HEAR is limited to households at or below 150% of area median income. You start by checking your income eligibility, then choose a registered contractor.
- North Carolina: the state’s Energy Saver North Carolina program says that from September 1, 2026, its HEAR rebates no longer cover replacing gas or other fossil-fuel appliances, now allow electric-to-electric upgrades, and may require insulation and air sealing with a heat pump project.
- What we could not confirm: an official, current list of every state’s status. DOE says more details on active programs are “coming soon.” Some states launched in 2024 and 2025, some paused during the 2025 federal funding freeze and restarted, and others had not launched when we checked. Your state energy office is the only reliable answer.
One more practical point: these rebates usually go through a registered contractor or retailer and require income checks and pre-approval. Buying a heat pump first and asking for the rebate later usually doesn’t work.
How to find every rebate you qualify for: do these next
Set aside 30 minutes, have your ZIP code and a recent utility bill handy (it shows your electric and gas utility and sometimes your rate plan), and work through these steps in order.
- ENERGY STAR Rebate Finder. Go to energystar.gov/rebate-finder and enter your ZIP code. It lists rebates and special offers on ENERGY STAR certified products near you, by category: heating and cooling, water heaters, appliances, smart thermostats, lighting and more. It’s the fastest way to see utility rebates for a specific product.
- DSIRE. The Database of State Incentives for Renewables and Efficiency at dsireusa.org, run by the N.C. Clean Energy Technology Center at N.C. State University since 1995, covers state tax credits, rebates, loans and policies such as net metering. Search by ZIP code or browse by state. It’s the best place to find state solar incentives and older programs that never make the headlines.
- Your utility’s website. Look for “rebates,” “save energy,” “marketplace” or “programs.” Many utilities run an online store with instant rebates on smart thermostats and LED bulbs, plus mail-in rebates for heat pumps and heat pump water heaters. Check both your electric and gas utility.
- Your state energy office. The National Association of State Energy Officials (NASEO) keeps a directory of every state and territory energy office at naseo.org/members-states. This is where HOMES and HEEHR rebates live, along with state-funded programs.
- City, county and co-op programs. Some cities, counties and electric co-ops add their own rebates or low-interest loans. Search “[your city] energy rebate” and check the co-op’s member page.
- Income-based help. If money is tight, DOE’s Weatherization Assistance Program reduces energy costs for low-income households through local agencies, often at no cost. Ask your state energy office or local community action agency.
- Smart thermostat rebates, often instant through the utility’s online store, for ENERGY STAR certified models. Some utilities add a sign-up bonus or yearly payment if you join a summer or winter peak program.
- Heat pump and heat pump water heater rebates, usually paid through participating contractors, and often tied to efficiency tiers and a minimum size.
- Home energy audits, free or low cost, sometimes with free LED bulbs, smart power strips or low-flow showerheads.
- Weatherization: insulation and air sealing rebates, usually after an audit.
- EV programs: charger rebates, special overnight rates, or payments for charging off-peak.
- Battery and solar programs: in some states the utility pays battery owners to send stored power to the grid at peak times. Net metering rules decide what your solar exports are worth; see net metering explained.
- New York: the Solar Energy System Equipment Credit is 25% of qualified costs, up to $5,000, for systems at your principal residence in New York. The state tax department says it also applies if you lease the equipment under a written agreement or sign a power purchase agreement of at least 10 years. Unused credit carries over for up to five years. It’s claimed on Form IT-255. (The department’s page was last updated in 2019, so confirm current rules.)
- South Carolina: the state solar credit is 25% of the cost of buying and installing a system you own, up to $3,500 per year, claimed on Form TC-38, with unused credit carried forward for up to 10 years, according to the SC Department of Revenue’s materials.
- ENERGY STAR certified
- Works without a C wire (Power Extender Kit)
- About $164.99 on sale at ecobee, Oct 2026
- ENERGY STAR certified
- Needs a C wire (adapter sold separately)
- About $79.99 list, Oct 2026
- ENERGY STAR certified
- C wire needed for heat pumps
- No subscription
- ecobee Smart Thermostat Enhanced: a radar occupancy sensor, 5 GHz Wi-Fi and a Power Extender Kit for homes without a C wire. The optional ecobee Smart Security subscription isn’t needed for heating and cooling.
- Amazon Smart Thermostat: built on Honeywell Home technology and run through the Alexa app, with no subscription. It needs a C wire; an adapter is sold separately or in a bundle. Not for line-voltage baseboard heaters.
- Sensi Lite: from Copeland, with no subscription. It runs without a C wire on most systems, but needs one for heat pumps and heat-only or cool-only systems.
- Get it in writing. Ask the contractor to list each rebate, its amount and who applies for it on the quote. If a rebate is “estimated,” ask what happens if it’s denied.
- Pre-approval first. HOMES, HEEHR and many utility programs need approval or a reservation before work starts.
- Registered contractor. Many programs only pay through contractors registered with the program. Check the program’s own directory, not the contractor’s word.
- Exact model numbers. Rebates usually depend on ENERGY STAR certification or an efficiency tier. Match the model number on the quote to the program’s list.
- Deadlines and paperwork. Mail-in rebates often need the invoice, model and serial numbers and a photo within 60 to 90 days. Calendar it.
- Watch the federal tax pitch. If a seller in 2026 promises a 30% federal tax credit on a system you’re buying for your home, ask them to show you the IRS rule. For homeowners who buy, 25D and 25C ended with 2025 installations.
- Ask about taxes. Some state incentives may count as income. Keep every letter and talk to a tax professional.
- Safety and permits. Heat pumps, panels, 240 V circuits and EV chargers are jobs for a licensed electrician or HVAC pro, with a permit where required. Most rebate programs require it anyway.
Where to look, by upgrade
| Upgrade | Federal tax credit in 2026? | Where rebates usually come from | Read next |
|---|---|---|---|
| Smart thermostat | No | Utility instant rebates, utility marketplaces, demand-response programs | Smart thermostat rebates |
| Heat pump (ducted or mini split) | No (25C ended Dec 31, 2025) | Utility rebates; state HEEHR where open and you qualify | Heat pump tax credit 2026 |
| Heat pump water heater | No (25C ended) | Utility rebates; state HEEHR where open | Heat pumps guide |
| Insulation and air sealing | No (25C ended) | Utility audit and weatherization programs; HOMES and HEEHR; Weatherization Assistance Program | How to lower your electric bill |
| Rooftop solar | No for homeowners who buy (25D ended); leases and PPAs differ | State tax credits and rebates, net metering rules, local programs | Solar tax credit 2026 |
| Home battery | No for homeowners who buy (25D ended) | Some state and utility battery programs; utility payments for sharing stored power | Home battery backup |
| Home EV charger | Only if placed in service by June 30, 2026, in an eligible area (30C) | Utility charger rebates and EV rate plans | EV tax credit 2026 |
Utility rebates: the most reliable money in 2026
Utility programs are usually paid for through utility rates and approved by state regulators, so they don’t depend on Washington. That makes them steadier than federal money, though they still change every year or two and can run out of budget. Common types:
Rebate amounts vary so much by utility that any national number would mislead you. Look up your own, and if a program page has a “funds remaining” note or an end date, take it seriously.
State solar incentives after the federal credit
With 25D gone for new installations, state programs matter more for solar. Two examples we confirmed on state tax agency pages:
Other states offer property tax exemptions (so solar doesn’t raise your assessment), sales tax exemptions or performance payments. DSIRE lists them by state. Our solar tax credit 2026 guide explains what the end of 25D means for buying vs leasing, and solar panels for home covers the bigger decision.
Smart thermostats: the easiest rebate to get
If you want one quick win, start here. Many utilities discount ENERGY STAR certified smart thermostats, and the install is usually a DIY job on standard 24 V systems (not line-voltage baseboard heat). These three are ENERGY STAR certified, according to our product research; check that the exact model is on your utility’s eligible list before you buy.
Prices change often. The prices below are what we saw at the maker or a major retailer in October 2026; check the current price before you buy.
ecobee Smart Thermostat Enhanced
Amazon Smart Thermostat
Sensi Lite Smart Thermostat
Check the ecobee Smart Thermostat Enhanced price on Amazon
More picks and the rebate details are in smart thermostat rebates and the best smart thermostats.
Before you sign: a rebate checklist
Which guide do you need?
| Your question | Read |
|---|---|
| Is there a solar tax credit in 2026? What about leases? | Solar tax credit 2026 |
| I installed solar in 2025. How do I claim it, and what about the unused part? | Form 5695 and the solar tax credit |
| Can I still get money back on a heat pump? | Heat pump tax credit 2026 |
| Is there still an EV or EV charger credit? | EV tax credit 2026 |
| Will my utility pay part of a smart thermostat? | Smart thermostat rebates |
Keep exploring
Rebates work best on upgrades that make sense on their own. Start with how to lower your electric bill, then read our guides to heat pumps, smart thermostats, solar panels for home and home EV chargers. For backup power, see home battery backup and portable power stations. To understand the bigger picture, read how solar energy works, clean energy and green energy, or browse all tax credit and grant articles.
Home energy rebate questions
Are there any federal home energy tax credits in 2026?
Not for most homeowners’ new projects. The IRS says the 25D solar and battery credit ended for expenditures made after December 31, 2025, and the 25C heat pump and efficiency credit ended for property placed in service after that date. The 30C EV charger credit ended for chargers placed in service after June 30, 2026. Unused 25D credit from earlier years can still carry forward.
Are the HOMES and HEEHR rebates still available?
In some states. DOE says the Home Energy Rebates are “now available in select states” and changed the HEEHR rules on May 29, 2026, ending rebates for switching from gas or oil to electric. Wisconsin’s program says both are available; North Carolina updated its rules on September 1, 2026. Check your state energy office for your state’s current status.
How do I find energy rebates by ZIP code?
Use the ENERGY STAR Rebate Finder (energystar.gov/rebate-finder) for product rebates near you, and DSIRE (dsireusa.org) for state and local incentives and policies. Both search by ZIP code. Then check your electric and gas utility’s rebate pages and your state energy office, because not every program shows up in the databases.
Can I get a rebate after I’ve already bought something?
Sometimes. Many utility mail-in rebates for thermostats and appliances accept applications for 60 to 90 days after purchase. Contractor-installed programs, including HOMES and HEEHR, usually need approval before work starts. Read the program’s terms before you buy, and keep your receipt, model number and installation invoice.
Are energy rebates taxable?
It depends on who pays it and why. The IRS says utility subsidies for energy conservation are generally not counted as income, and rebates from the seller or maker generally lower your cost. It also warns that some state incentives called “rebates” may be taxable income. Keep the paperwork and talk to a tax professional about your case.
Can renters get home energy rebates?
Some. Renters can usually use utility rebates on things they own, like smart thermostats (with the landlord’s OK), window heat pumps, portable appliances and LED bulbs. Bigger upgrades need the owner. Some HEEHR and utility programs serve rental buildings when the owner applies, and income-qualified renters may get help through weatherization programs.