IRA Tax Credits in 2026: What's Left and What's Gone

The Inflation Reduction Act was supposed to be a decade-long engine for clean energy adoption in America. Signed in August 2022, it created the most generous package of consumer clean energy tax credits the country had ever seen: 30 percent off solar installations, up to $7,500 for a new electric vehicle, thousands for heat pumps and insulation, and much more. Those credits were designed to last through the early 2030s.

Then the One Big Beautiful Bill Act changed everything.

Signed into law on July 4, 2025, the OBBBA accelerated the termination of nearly every consumer-facing IRA clean energy tax credit. If you are shopping for solar panels, an electric vehicle, a heat pump, or a home battery in 2026, the incentive landscape looks dramatically different from just a year ago.

This guide walks you through exactly what happened, what is still available, and how to make the most of the incentives that remain. If you are specifically interested in solar incentives, our detailed breakdown of solar incentives and tax credits in 2026 covers that topic in depth.

What Was the Inflation Reduction Act?

The Inflation Reduction Act, signed August 16, 2022, allocated roughly $369 billion toward energy security and climate change provisions. For everyday consumers, the headline features were straightforward: generous tax credits that made clean energy upgrades significantly more affordable.

The IRA created or expanded credits across virtually every category of residential clean energy. Solar panels, battery storage, heat pumps, insulation, electric vehicles, EV chargers, geothermal systems, and energy-efficient windows and doors all qualified for substantial federal tax credits. The goal was to accelerate adoption by reducing the upfront cost barrier that prevents most households from making the switch.

For roughly three years, the program worked. Solar installations surged, EV sales climbed, and heat pump adoption hit record levels. Then Congress changed course.

What Changed: The One Big Beautiful Bill

The One Big Beautiful Bill Act, formally Public Law 119-21, was signed on July 4, 2025. Among its many provisions, it accelerated the termination of most IRA clean energy tax credits, in some cases cutting their lifespans by seven or more years.

Here is the complete timeline of what expired and when.

Credits That Expired September 30, 2025

New Clean Vehicle Credit (Section 30D) — The headline EV credit that offered up to $7,500 for qualifying new electric vehicles. Originally set to expire December 31, 2032. Terminated for all vehicles acquired after September 30, 2025.

Previously Owned Clean Vehicle Credit (Section 25E) — Up to $4,000 for qualifying used electric vehicles. Same original and accelerated expiration dates as 30D.

Qualified Commercial Clean Vehicle Credit (Section 45W) — Credits for commercial fleet EVs and leased consumer vehicles. Also terminated September 30, 2025.

The EV credits had an important transition rule: if you entered a written binding contract and made a payment (including a down payment or trade-in) on or before September 30, 2025, you could still claim the credit even if the vehicle was delivered after that date. But that window is long closed.

Credits That Expired December 31, 2025

Residential Clean Energy Credit (Section 25D) — The 30 percent tax credit for solar panels, battery storage, geothermal heat pumps, small wind turbines, and fuel cells installed at your home. Originally set to phase down starting in 2033. Terminated for all property where installation was completed after December 31, 2025.

This is important: eligibility was based on when installation was completed, not when you paid or signed a contract. If your solar panels were not physically installed and operational by the end of 2025, you cannot claim this credit. For a full breakdown of what this means for solar buyers, see our guide on the real cost of installing solar panels at home.

Energy Efficient Home Improvement Credit (Section 25C) — The 30 percent credit (up to $3,200 annually) for heat pumps, insulation, windows, doors, and other energy efficiency upgrades. Originally available through 2032. Terminated for property placed in service after December 31, 2025.

Credits Expiring June 30, 2026

A small number of credits survive into 2026, though not for much longer.

Alternative Fuel Vehicle Refueling Property Credit (Section 30C) — This is the EV charger credit, offering 30 percent of the cost (up to $1,000 for residential) for installing qualified alternative fuel refueling equipment. It is available for equipment placed in service on or before June 30, 2026, but only in eligible census tracts (low-income communities or non-urban areas).

If you are planning to install a home EV charger, this is your last window for a federal credit. Check whether your address qualifies at the Department of Energy's Alternative Fuels Station Locator. For a full walkthrough of what installation involves, see our guides on EV charging at home and how much it costs to install an EV charger.

New Energy Efficient Home Credit (Section 45L) — Available to builders of new energy-efficient homes through June 30, 2026.

Energy Efficient Commercial Buildings Deduction (Section 179D) — Available for construction beginning on or before June 30, 2026.

What Is Still Available for Consumers in 2026

Let us be direct: the federal incentive landscape for individual consumers is thin in 2026. Most of the big-ticket credits are gone. But there are still meaningful options if you know where to look.

1. The EV Charger Credit (Through June 2026)

Section 30C is the only remaining consumer tax credit with real value, and it expires June 30, 2026. If you are in an eligible census tract and planning to install a Level 2 charger at home, you can claim 30 percent of the cost up to $1,000. That is not transformative, but on a typical $500 to $1,500 charger installation, it covers a meaningful chunk. Our best Level 2 EV chargers guide can help you choose the right unit.

2. Carryforward of Prior Year Credits

If you installed solar panels, a battery, a geothermal system, or made qualifying energy-efficient improvements between 2022 and 2025, and your tax liability was not large enough to use the full credit in the year of installation, you can carry the unused portion forward into 2026 and beyond. The carryforward has no expiration. You will need IRS Form 5695 to claim it.

This is particularly relevant for homeowners who installed large solar-plus-battery systems in 2025 and generated credits of $10,000 or more. If your federal tax bill was less than the credit amount, the excess rolls forward until it is fully used.

3. Solar Leases and PPAs (Indirectly Through Commercial Credits)

While the residential solar credit is gone, the commercial-side credits that benefit solar leasing companies and PPA providers are still partially available. Section 48E, the Clean Electricity Investment Credit, still applies to solar and wind projects that begin construction before July 4, 2026.

What this means for you: when you sign a solar lease or Power Purchase Agreement, the solar company owns the panels and claims the 48E credit themselves. They pass those savings on to you through lower monthly payments or a reduced per-kilowatt-hour rate. This remains the most accessible path to affordable solar for homeowners who missed the 25D credit window.

However, the clock is ticking. Solar projects beginning construction after July 4, 2026 face a much tighter placed-in-service deadline (December 31, 2027), and after that, the credit for solar effectively ends. If you are considering a lease or PPA, starting the process in early-to-mid 2026 gives you the best shot at favorable pricing.

4. HOMES and HEAR Rebate Programs

These are not tax credits but rather direct rebates funded by the IRA and administered by individual states. Congress allocated $8.8 billion combined for these two programs, and they were not repealed by the OBBBA.

HOMES (Home Energy Performance-Based Rebates) offers up to $8,000 for whole-home energy retrofits for income-qualified households, and up to $4,000 for moderate-income households. The rebate is based on achieving measured energy savings through a combination of improvements.

HEAR (Home Electrification and Appliance Rebates) provides point-of-sale rebates for specific electrification upgrades: heat pumps (HVAC and water heating), electric stoves and cooktops, electrical panel upgrades, insulation, and wiring. Households earning less than 150 percent of area median income can receive up to $14,000 in total rebates.

The catch is that rollout varies enormously by state. As of March 2026, some states like Colorado and Washington have active programs. California's single-family HEAR program is already fully reserved. Oregon is targeting a spring 2026 launch. Texas anticipates launching in 2026. Florida and South Dakota declined their federal allocations entirely, meaning residents in those states have no access.

Check with your state energy office to find out whether HOMES and HEAR are available in your area and how to apply.

Category-by-Category Breakdown

Solar Panels

Federal credit status: Expired December 31, 2025 (Section 25D). No direct federal credit for homeowner-owned systems in 2026.

What to do instead: Consider a solar lease or PPA to benefit indirectly from the commercial 48E credit (available for projects starting construction before July 4, 2026). Explore state incentives, which vary widely. New York's 25 percent state credit (up to $5,000) plus NY-Sun rebates make it one of the best markets. South Carolina offers 25 percent (up to $35,000 over 10 years). Massachusetts combines a state credit with SMART program payments over 20 years.

Even without federal credits, solar equipment costs continue to decline, and the savings on electricity bills make solar financially attractive in most states. For the full financial picture, read our guide to the real cost of installing solar panels at home.

Battery Storage

Federal credit status: Expired December 31, 2025 (previously covered under 25D).

What to do instead: State programs are your best bet. California's Self-Generation Incentive Program (SGIP) provides per-kilowatt rebates with higher incentives for customers in fire-threat districts. Colorado's Renewable Battery Connect offers $350 per kilowatt (up to $5,000) plus an annual participation payment. Oregon provides up to $2,500. The Massachusetts SMART program pays a higher per-kilowatt-hour rate if your solar installation includes battery storage.

Battery storage is becoming more important as net metering policies weaken in some states. If your utility is shifting to time-of-use rates or reducing net metering credits, a battery lets you store surplus solar energy and use it during expensive peak hours instead of exporting it at a low rate. Our home battery storage guide covers the top systems and their costs, and our guide on whether you actually need a home battery helps you decide if the investment makes sense for your situation.

Heat Pumps and HVAC

Federal credit status: Expired December 31, 2025 (Section 25C covered heat pumps up to $2,000, other HVAC up to $600).

What to do instead: The HEAR rebate program is the primary replacement for heat pump incentives, offering substantial point-of-sale rebates for income-qualified households. Massachusetts has some of the most generous state incentives: up to $15,000 for ground-source heat pumps ($25,000 for income-qualified) and up to $16,000 for air-to-water systems. Many utility companies also offer their own heat pump rebates.

Electric Vehicles

Federal credit status: All EV credits expired September 30, 2025 (30D, 25E, 45W).

What to do instead: There is no federal replacement. Some states offer their own EV incentives: Colorado provides up to $5,000 for new EVs, New York offers the Drive Clean rebate of up to $2,000, and Oregon provides up to $7,500 for income-qualified buyers. However, the robust federal credit structure that drove EV adoption from 2023 to 2025 is gone.

The OBBBA did introduce a new tax deduction for auto loan interest (up to $10,000 for vehicles assembled in the US with an MSRP under $100,000), which partially offsets the lost EV credit for financed purchases, though this benefit applies to all vehicles, not just electric ones.

EV Chargers

Federal credit status: Section 30C available through June 30, 2026 (30 percent, up to $1,000 residential). Must be in eligible census tract.

What to do: If you qualify, install before the June 30, 2026 deadline. Even if the credit is modest, combining it with a state or utility rebate can meaningfully reduce costs. Check our complete guides on EV charging at home and installation costs to plan your setup.

Geothermal

Federal credit status: Residential credit expired December 31, 2025 (25D). Commercial credit (48E) still available for non-solar/wind technologies with extended phase-out: 100 percent through 2033, phasing to zero by 2036.

What to do instead: Like solar, geothermal can be structured through third-party ownership arrangements that utilize the commercial credit. Check state incentives as well, as geothermal qualifies for many state renewable energy programs.

Windows, Doors, and Insulation

Federal credit status: Expired December 31, 2025 (Section 25C).

What to do instead: HOMES whole-house rebates may cover these improvements as part of a comprehensive energy retrofit. HEAR rebates cover insulation specifically. Many utility companies offer rebates for weatherization improvements. These are not as generous as the former federal credit, but they help.

How to Claim Credits You Are Still Owed

If you made qualifying clean energy improvements in 2025 or earlier, make sure you are claiming everything you are entitled to.

For residential solar, battery, and geothermal (25D): File IRS Form 5695, Part I. Calculate your qualified expenditures, apply the 30 percent credit rate, and transfer the result to Schedule 3 of your Form 1040. If your credit exceeds your tax liability, carry the unused portion forward to next year.

For home improvements like heat pumps, windows, and insulation (25C): File IRS Form 5695, Part II. The annual limits are $2,000 for heat pumps and biomass stoves, and $1,200 for other improvements (windows capped at $600, doors at $500). Unlike 25D, the 25C credit could not be carried forward, so it could only reduce your tax liability in the year the improvement was made.

For EV purchases (30D/25E): If you acquired a qualifying vehicle on or before September 30, 2025, claim the credit on IRS Form 8936. If you transferred the credit to the dealer at the point of sale, this should already be reflected in your purchase price.

Keep all receipts, installer invoices, manufacturer certifications, and equipment specifications. Tax software like TurboTax or H&R Block can walk you through these forms step by step, or work with a qualified tax professional if your situation is complex.

The Supply Chain Wild Card: FEOC Restrictions

The OBBBA introduced Foreign Entity of Concern (FEOC) restrictions that affect the commercial clean energy credits still available. For projects beginning construction after December 31, 2025, the solar company or developer must certify that no components come from prohibited foreign entities, including companies tied to China, Russia, North Korea, and Iran.

Since China has been the dominant global manufacturer of solar panels, battery cells, and many clean energy components, these restrictions are reshaping supply chains in real time. The practical effect for consumers is uncertain but could mean higher prices for leased solar systems and battery storage as manufacturers and developers adjust their sourcing.

The IRS is expected to release safe harbor tables by December 31, 2026 that will clarify exactly which components trigger FEOC disqualification. Until then, solar companies and developers are navigating some ambiguity, which may affect contract terms and pricing.

State Incentives: Your Best Resource in 2026

With most federal credits gone, state and local incentives are now the primary financial driver for residential clean energy adoption. The variation between states is enormous. A homeowner in New York can stack a 25 percent state tax credit, NY-Sun rebates, property tax exemptions, and full retail net metering for a total incentive package worth thousands. A homeowner in a state with no solar incentives and weak net metering faces a much longer payback period.

The best resource for finding every incentive available in your area is the Database of State Incentives for Renewables and Efficiency (DSIRE) at dsireusa.org. Enter your zip code and it will show you every federal, state, local, and utility incentive you qualify for.

For net metering specifically, which remains one of the most valuable solar benefits in 34 states, our guide on how net metering works and how to maximize it explains the details.

What Comes Next

The clean energy incentive landscape is not static. Several factors could reshape it again in the coming years.

The commercial credits for solar and wind (48E/45Y) face a hard construction-start deadline of July 4, 2026, after which projects must be placed in service by December 31, 2027. This means the solar lease and PPA market may tighten significantly by late 2026 and into 2027.

Non-solar clean energy technologies like geothermal, battery storage, and hydropower retain their commercial credits through 2033 under the original IRA phase-out schedule, so third-party ownership options for those technologies have a longer runway.

The HOMES and HEAR rebate programs will continue rolling out across states, with more programs expected to launch through 2026. These represent the most significant remaining federal support for consumer clean energy adoption.

State legislatures continue to act as well. Several states are considering new or expanded clean energy incentive programs specifically to fill the gap left by the federal credit expirations. Watch for legislative activity in your state, particularly if you live somewhere that has historically relied heavily on the federal credits.

The Bottom Line

The Inflation Reduction Act's consumer clean energy tax credits were historic in scope, and their early termination under the One Big Beautiful Bill represents a genuine loss for homeowners interested in solar, EVs, heat pumps, and energy efficiency upgrades. The federal government is no longer subsidizing these purchases the way it was from 2022 through 2025.

But that does not mean clean energy is unaffordable. State incentive programs, the surviving HOMES and HEAR rebate programs, commercial credits that flow through to consumers via leases and PPAs, declining equipment costs, and the simple economics of generating your own electricity or driving on cheaper fuel all continue to make clean energy a smart financial decision for many households.

The key is to understand what is available to you specifically, based on where you live, what improvements you are considering, and your household income level. Use DSIRE to find your local incentives, check whether HOMES and HEAR are active in your state, get multiple quotes from installers, and consider third-party ownership options that leverage the commercial credits still in play.

The window is not fully closed. But it is narrower than it was, and for some credits, it is closing fast. If you have been considering a clean energy upgrade, doing your research now and acting in the first half of 2026 puts you in the best position to capture whatever value remains.

For deeper dives into specific topics, explore our guides on solar incentives and tax credits in 2026, the real cost of solar panels, home battery storage, whether you need a home battery, EV charging at home, EV charger installation costs, and how net metering works.