2026 Home Electrification Incentives

~8 min read · Updated April 2026

With the 25D residential solar tax credit and 30D EV tax credit both ending at the close of 2025, a lot has changed. Here's what's alive, what's dead, and how to stack what remains.

Federal — alive in 2026

25C Energy Efficient Home Improvement Credit

30% of cost, capped at $2,000/yr for heat pumps, $1,200/yr for insulation/doors/windows. Available through 2032. Non-refundable — you need federal tax liability to use it.

HEAR (High-Efficiency Electric Home Rebate)

Up to $14,000 per household across all electrification measures, including:

• Heat pump: up to $8,000
• Heat pump water heater: up to $1,750
• Electric stove/oven: up to $840
• Electrical panel upgrade: up to $4,000
• Wiring: up to $2,500

Income-qualifying. State-administered; most states are live or launching by mid-2026. Check DOE's state tracker.

HOMES (Home Efficiency Rebates)

$2,000 per home for 20-35% modeled energy reduction; $4,000 for 35%+. Income-qualifying households get up to $8,000.

Federal — dead in 2026

• 25D Residential Clean Energy Credit: expired Dec 31, 2025. Solar, battery storage, and geothermal heat pumps installed in 2026 get no federal tax credit.
• 30D New Clean Vehicle Credit ($7,500): expired Dec 31, 2025.
• 25E Used Clean Vehicle Credit ($4,000): expired Dec 31, 2025.

State highlights

Solar

California (SGIP battery), Massachusetts (SMART), New York (NY-SUN), New Mexico (10% state tax credit, up to $6k), Arizona (25% state credit up to $1k), South Carolina (25% state credit).

EV

Colorado ($3,500), California CVRP ($2k-$7,500), New Jersey (sales tax exemption), Illinois ($4,000), Delaware ($2,500), Connecticut ($4,250).

Heat pumps

Massachusetts (MassSave up to $10k), Maine ($8k Efficiency Maine), Maryland ($3k), New York (NYSERDA), Minnesota (Xcel/Minnesota Power programs).

Stacking rules of thumb

1. Federal tax credits and state-level rebates generally stack.
2. HEAR and 25C cannot be stacked on the same equipment — pick one.
3. Utility rebates typically reduce your invoice before federal credits, which means they reduce your federal credit base.