Do Federal Solar & Heat-Pump Tax Credits Still Exist in 2026?
If you are researching solar, a heat pump, or home efficiency in 2026, the single most important change is this: the federal residential tax credits are gone.
Both the Residential Clean Energy Credit (IRS Section 25D, the "30% solar credit") and the Energy Efficient Home Improvement Credit (Section 25C, which covered heat pumps and weatherization) were terminated for systems placed in service on or after January 1, 2026, by Public Law 119-21 (the "One Big Beautiful Bill"), signed July 4, 2025.
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Section 25D (solar, battery storage): the 30% federal credit no longer applies to customer-owned residential systems placed in service in 2026 or later. There is no phase-down and no partial credit.
Section 25C (heat pumps, insulation, weatherization, heat-pump water heaters): the up-to-$2,000 (heat pump) and up-to-$1,200/year (efficiency) credits also ended for property placed in service on/after Jan 1, 2026.
What still saves you money
State and utility incentives were not affected and are often substantial — net-metering credits, utility battery rebates, state sales- and property-tax exemptions, and efficiency-program rebates all continue.
These programs vary by state and even by utility, so the savings math is now local rather than federal. A quick assessment is the fastest way to see what applies to your specific home and ZIP.
Frequently asked
Is there still a 30% federal solar tax credit in 2026?
No. The Section 25D Residential Clean Energy Credit ended for systems placed in service on or after January 1, 2026 (Public Law 119-21).
Did the federal heat-pump tax credit end too?
Yes. The Section 25C Energy Efficient Home Improvement Credit, which covered heat pumps and weatherization, also ended for property placed in service on/after January 1, 2026.
So is going solar or electrifying still worth it?
Often yes — but the economics now rest on state and utility incentives plus energy savings rather than the federal credit. Run a free EnergyAI assessment to see your specific numbers.
Sources
Incentive amounts change; figures verified 2026-06-02. This is educational information, not tax advice.
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