Heat Pump and Solar Tax Credits in 2026: What Replaced Them

Every amount links to the official program. Last checked September 29, 2026.

By Sam Menard

Short answer: The federal tax credits are gone for 2026 installs. The 30% Energy Efficient Home Improvement Credit (25C, heat pumps and insulation) and the 30% Residential Clean Energy Credit (25D, solar, batteries and geothermal) don't apply to anything installed after December 31, 2025. State and utility rebates are now the main help: up to $10,000 or more for a heat pump in New York, up to $8,500 in Massachusetts, and utility rebates in California and Vermont.

Federal tax credits: amounts in 2026

UpgradeAmountRules
Federal 25C (heat pumps, insulation, windows)EndedOnly for improvements made through December 31, 2025. Source
Federal 25D (solar, batteries, geothermal)EndedNot available for property placed in service after December 31, 2025. Source
New York: NYS Clean HeatUp to $10,000 (more in a DAC)Through your electric utility; participating contractor. Long Island: PSEG $4,000 to $7,500. Source
New York: EmPower+Free up to $12,000 to $14,000Low-income homes; moderate income gets 50% up to $6,000 to $7,000. Source
Massachusetts: Mass SaveUp to $8,500 (up to $16,000 income-qualified)Plus 0% HEAT Loan and 75% to 100% off insulation. Source
Massachusetts: state solar tax credit15% of costState income tax credit; still available. Source
California: SMUD (Sacramento)Heat pump up to $3,000; water heater up to $4,000Plus up to $2,000 Go Electric bonus when replacing gas. Source
California: LADWP (Los Angeles)Heat pump up to $2,500 per tonWater heater up to $2,500. Source
California: TECH Clean California and HEEHRAFully reservedWaitlist only. Source
Vermont: Efficiency VermontUp to $2,200 ducted heat pumpPlus income bonuses and up to $2,000 from Green Mountain Power for income-eligible homes. Source

Amounts last checked September 29, 2026 against each program's official page (linked in each row).

How to apply

  1. If your install finished in 2025, you can still claim 25C or 25D on your 2025 tax return with IRS Form 5695.
  2. For 2026 installs, look up your electric utility and state program; that's where the money is now.
  3. Many rebates need a participating contractor or approval before work starts. Check before you sign.
  4. Be wary of quotes that still subtract a 30% federal tax credit for a 2026 install.

Recent changes

See every rebate change.

Find your city and an installer

See the exact rebates for your city on the US rebates page, then compare top-rated installers by city, ranked by Google reviews. No one pays to be listed.

Common questions

Is there a federal tax credit for heat pumps in 2026?

No. The 25C credit covers improvements made through December 31, 2025 only. For 2026, look at state and utility rebates.

Can I still get the 30% solar tax credit?

Not for a system installed after December 31, 2025. The 25D credit ended early under the 2025 federal budget law (the One Big Beautiful Bill).

I installed a heat pump in December 2025. Can I still claim it?

Yes, if it was installed by December 31, 2025. Claim it on your 2025 return with Form 5695.

What replaced the federal tax credits?

Nothing federal for most homeowners. State and utility programs like NYS Clean Heat, Mass Save and Efficiency Vermont are now the main rebates.

Related: NYS Clean Heat · Mass Save · California rebates · Vermont rebates

Other program guides: BC Hydro rebates · CleanBC rebates · Home Renovation Savings · NYS Clean Heat · Mass Save · Efficiency Nova Scotia rebates · BC Hydro Peak Saver · Alberta energy rebates · PECO rebates · PPL Electric rebates · Xcel Energy Colorado rebates

Something out of date? Email [email protected] and we'll check it within a week.

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