A couple of federal personal tax credits were available for the installation of certain energy efficient or clean energy property in your home. Under the One Big Beautiful Bill Act (OBBBA), these credits have expired for any property placed in service after December 31, 2025.
The Energy Efficient Home Improvement Credit and the Residential Clean Energy Property Credit were terminated by the One Big Beautiful Bill Act (OBBBA) for property placed in service after December 31, 2025.
Although these credits previously covered qualifying expenditures for existing homes (and new construction for the clean energy credit), they are no longer available for any improvements made or property installed in 2026. Taxpayers who installed qualifying property in 2025 may still claim the credits on their 2025 tax returns filed in 2026, but new 2026 projects do not qualify for these federal tax benefits.
Energy efficient home improvement credit
The Energy Efficient Home Improvement Credit expired on December 31, 2025, and is no longer available for improvements placed in service during the 2026 tax year.
While taxpayers previously could claim a 30% credit (up to $3,200 annually) for qualified expenditures-such as exterior doors, windows, insulation, heat pumps, and biomass stoves-these federal tax benefits were terminated by the One Big Beautiful Bill Act (OBBBA) for all new projects completed in 2026.
Taxpayers who completed qualifying improvements in 2025 may still claim the credit on their 2025 tax returns filed in early 2026. However, no credit is available for 2026 expenditures, and unlike the residential clean energy credit, any unused portion of this credit from previous years cannot be carried forward to 2026.
Residential clean energy property credit
The Residential Clean Energy Property Credit expired on December 31, 2025. For installations completed on or after January 1, 2026, the 30% credit for solar panels, solar water heaters, fuel cell property, wind turbines, geothermal heat pumps, and battery storage is no longer available.
Although new credits cannot be generated in 2026, taxpayers who have unused credit amounts from years prior to 2026 may still carry those amounts forward to offset their 2026 tax liability.
Under the One Big Beautiful Bill Act (OBBBA), the Energy Efficient Home Improvement Credit and the Residential Clean Energy Property Credit were terminated effective December 31, 2025.
While these credits previously required the installation of new property meeting standards such as Energy Star, the International Energy Conservation Code, or the Consortium for Energy Efficiency, they are no longer available for any equipment placed in service or expenditures made during the 2026 tax year.
This content has been reviewed by FINRA.
Prepared by Broadridge Advisor Solutions. © 2026 Broadridge Financial Services, Inc.