Federal credits / Federal 25C credit
26 U.S.C. §25C, as amended by Public Law 119-21 (July 4, 2025)
Energy Efficient Home Improvement Credit (IRC §25C)
Ended. Not allowed for property placed in service after December 31, 2025. The IRS page, last updated April 28, 2026, says: “can claim the credit for improvements made through December 31, 2025.” Checked October 20, 2026.
- 1Air-source heat pump $2,000 cap, ended
- 2Heat pump water heater $2,000 cap, ended
- 3Insulation and air sealing $1,200 cap, ended
- 4Electrical panel upgrade $600 cap, ended
What the credit paid
- Air-source heat pump: 30% of cost, up to $2,000 a year (heat pumps, heat pump water heaters, biomass stoves and boilers combined).
- Heat pump water heater: 30% of cost, up to $2,000 a year (shared with heat pumps).
- Insulation and air sealing: 30% of insulation and air-sealing materials, within the $1,200 annual limit (labor not included).
- Electrical panel upgrade: 30% of panelboards, sub-panels, branch circuits and feeders that support qualifying property, up to $600 per item.
Conditions the IRS listed: Existing U.S. home that is your main residence; New property meeting the efficiency standards; For 2025 property, a qualified manufacturer's product ID (QMID) reported on the return; Nonrefundable; no lifetime dollar limit.
Sources: IRS: Energy Efficient Home Improvement Credit (updated April 28, 2026); IRS FS-2025-05: FAQs on sections 25C, 25D and 30C under Public Law 119-21 (August 21, 2025). Checked October 20, 2026.
When “ended” bites
The cut-off is about when the property is placed in service, not when it is paid for. The IRS fact sheet on the July 4, 2025 law says that for the clean energy credit an expenditure counts as made when installation is complete, so a deposit paid in 2025 for a system finished in 2026 does not qualify. Property placed in service before the cut-off belongs to that earlier tax year.
What is left, state by state
| State | Air-source heat pump | Heat pump water heater | Insulation and air sealing | Electrical panel upgrade |
|---|---|---|---|---|
| Arizona | $1,125 | $500 | $600 | — |
| California | $3,000 | $4,000 | — | $4,000 |
| Connecticut | $10,000 | $1,900 | $10,000 | — |
| Florida | $200 | — | — | — |
| Maine | $9,000 | $1,200 | $8,600 | — |
| Massachusetts | $16,000 | $1,500 | $5,000 | $1,700 |
| Michigan | $350 | — | — | — |
| New Hampshire | $10,000 | $900 | $6,000 | — |
| North Carolina | $8,000 | $1,750 | $1,600 | $4,000 |
| Oregon | $3,000 | $1,200 | $1,500 | — |
| Pennsylvania | — | $500 | — | — |
| Rhode Island | $11,500 | $625 | — | — |
| Texas | $950 | $1,000 | — | — |
| Vermont | $4,000 | $1,000 | $7,000 | — |
| Wisconsin | $900 | $300 | $1,475 | — |
The table shows the largest open state or utility amount for each item the credit used to cover; a dash means no open, sourced offer was found. For air-source heat pump, 14 of 15 covered states still pay something. For heat pump water heater, 13 of 15 covered states still pay something. For insulation and air sealing, 9 of 15 covered states still pay something. For electrical panel upgrade, 3 of 15 covered states still pay something.
State IRA rebates: the other federal money
The Inflation Reduction Act home energy rebates are federal dollars run by each state energy office, and Public Law 119-21 did not end them. Their status in each state whose page was read, in that state's own words:
- California: Closed to new applications. “As of February 24, 2026, HEEHRA single-family rebates are fully reserved for projects statewide.” Multifamily rebates were fully reserved as of September 1, 2026, and “The program is no longer accepting new reservations.”
- Colorado: Closed to new applications. “The HEAR single-family program is now closed for both Region 1 (the Front Range) and Region 2 (All Other Counties).” HER for manufactured homes and large multifamily buildings is listed for 2026 with no start date.
- Connecticut: Not launched. “Rebates will not be available until the programs are launched.” In June 2026 DEEP reported it was “actively reviewing the new guidance” DOE issued on June 1, 2026; no launch date is given.
- Florida: Not launched. The programs are “expected to launch in the future”; “Additional information on the program timeline will be made available soon.”
- Georgia: Limited. “HEAR will reopen with limited measures in October 2026.” The page gives no per-upgrade amounts (it says eligible households “can get up to $16,000”).
- Maine: Limited. HEAR ($35.7 million) is active only for heat pumps in new affordable multifamily housing and single-wide mobile homes. HER ($35.9 million) is conditionally awarded. Efficiency Maine is reviewing a June 1, 2026 federal Program Notice.
- Massachusetts: Not launched. The DOER page does not confirm a launch: “DOE approval on the State Implementation Blueprint is required before programs can be launched.” HEAR is planned to run through Mass Save.
- Michigan: Limited. Open for low- and moderate-income households, but new income-qualified applications in the Detroit, Warren, Grand Rapids, Lansing and Kalamazoo districts are “temporarily unavailable while MiHER reviews current applications and funding capacity.” HEAR is for households at or below 150% of area median income; the pages publish no per-upgrade amounts.
- New Hampshire: Not launched. “Currently, the Home Electrification and Appliance Rebates Program funding is not available to NH consumers.”
- North Carolina: Open. Launched January 16, 2025 and expected to run “until 2031 or until funds are depleted”, first come first served. After DOE's May 29, 2026 guidance, “Current and new HEAR applicants should continue applying”, but from September 1, 2026 “Fuel Switching Projects are NOT allowed” while “Electric-to-Electric Upgrades ARE allowed.”
- Oregon: Not launched. “Program launch and enrollment is pending U.S. DOE approval.” HOMES is planned at 50–100% of project cost up to $10,000 and HEAR at 50–100% up to $14,000 for households up to 150% of area median income; “Details may change pending final guidance from the U.S. DOE.”
- Rhode Island: Limited. HEAR launched September 17, 2024; its Retail Pathway Pilot is limited to 11 municipalities, and since September 1, 2026 “Equipment rebates are no longer available for switching from a fossil fuel appliance to an electric one.” HOMES launched September 23, 2026 for income-eligible customers installing a heat pump modeled to cut energy use at least 20%. The OER pages do not publish per-upgrade amounts.
- Texas: Not launched. “Rebates are not currently available.” SECO will set a launch date only after DOE approves the state's plan; in April 2026 it hired APTIM to help design and run the programs.
- Vermont: Not launched. The department says “It's recommended not to plan on HEAR funds for future projects at this time” (updated May 2025). HOMES is planned through the Weatherization Assistance Program.
- Washington: Limited. Run by 40 local administrators for households at or below 150% of area median income; the administrator list is posted “as soon as their contracts are finalized”. The page publishes no dollar amounts.
- Wisconsin: Open. Focus on Energy says both programs “are NOW AVAILABLE”. HEAR is for households at or below 150% of area median income and covers heat pumps, insulation and air sealing, and “upgraded electrical panels and wiring”; the page publishes no dollar amounts, so none are shown here.
The other federal credits: Federal 25D credit (ended December 31, 2025), Federal 30C credit (ended June 30, 2026). Plain-language summary: is the federal heat pump credit still available?
Rebates are set by each program and can change or close without notice; the program's own page and application decide what is paid. This page is information, not tax, legal or financial advice. Amounts last checked October 21, 2026.