This is an independent service. NYSERB is not affiliated with New York State, NYSERDA, or any government agency. Learn more
NYSERB
New York Energy Resource Bureau
An independent homeowner guide to NY energy incentives

Federal Residential Energy Tax Credits: Program Ended

Administered by: Internal Revenue Service (IRS) Status: Ended December 31, 2025 Verified: May 22, 2026 against IRS §25D and IRS §25C

This federal credit ended December 31, 2025. No new 2026 installations qualify. If a contractor, solar company, or website tells you the 30% federal tax credit is still available for a system you're installing in 2026, ask them to show you a current IRS source. The credits ended.

What it covered

§25D: Residential Clean Energy Credit

This was the big one. Solar panels, battery storage, geothermal heat pumps, wind turbines, and fuel cells all qualified. The credit was 30% of installed costs, with no annual cap for most equipment. The IRS confirmed it applies only to property placed in service on or before December 31, 2025. After that date, the credit is zero for residential installations.

For 2025 tax returns (filed in 2026): if your system was installed and placed in service by December 31, 2025, you can still claim §25D on your 2025 federal return using IRS Form 5695. The credit didn't disappear retroactively; it just stopped applying to new installations after that date.

§25C: Energy Efficient Home Improvement Credit

This covered annual efficiency upgrades: insulation, windows, exterior doors, energy audits, heat pumps, and heat pump water heaters. The annual limit was $1,200 for general improvements, with a separate $2,000 limit for heat pump systems. No lifetime cap; the limit reset each year.

Like §25D, §25C is confirmed expired for property placed in service after December 31, 2025. The IRS page (last reviewed April 28, 2026) is explicit on this. Installations made during 2025 can still be claimed on the 2025 tax return. The credit is gone for 2026.

§30C: Alternative Fuel Vehicle Refueling Property Credit (EV chargers)

This one is still technically alive, but just barely. The "One Big Beautiful Bill" signed in July 2025 shortened the credit's end date to June 30, 2026 (from the original 2032 expiration), according to EnergySage (a secondary source, updated November 7, 2025). The legislation also restricted eligibility: the credit now applies only to property located in a rural (non-urban) census tract or a designated low-income community.

If you're in suburban or urban New York, you probably don't qualify. The Argonne National Laboratory has a locator tool at anl.gov/esia/refueling-tax-credit where you can check whether your address falls in an eligible census tract. The credit is 30% of installation costs, maximum $1,000. It expires June 30, 2026. The §30C expiration date and rural/low-income restriction come from EnergySage (secondary source); verify against the current IRS Form 8911 instructions before relying on them.

Why it ended

Both §25D and §25C were created by the Inflation Reduction Act of 2022 with scheduled sunset dates. Congress did not extend them before the December 31, 2025 expiration. The IRS pages reviewed during this research sweep (as recently as April 28, 2026 for §25C) do not reference any extension. No NYSERDA, IRS, or utility source reviewed for this site describes these credits as continuing past 2025.

What's still available

The loss of the federal credits doesn't mean there's nothing left in New York. The state programs and utility rebates are still active.

  • NY-Sun (NYSERDA Solar): The state's 25% solar tax credit, up to $5,000, is still available. It stacks with the NY-Sun upfront rebate.
  • NYS Clean Heat / Heat Pump Program: Rebates up to $35,000 for geothermal systems in Con Edison territory, up to $10,000 for air-source heat pumps. Active through NYSERDA and utility partners.
  • Comfort Home Program: Up to $3,000 for insulation and air sealing. No income limit.
  • EmPower+: For income-qualified households, this is where the federal HEAR rebates (up to $14,000) now live in New York.
  • Con Edison Residential Rebates: Up to $35,000 for geothermal, $4,000 for weatherization, $85 for smart thermostats.
  • Central Hudson Residential Rebates: $18,000 for ground-source heat pump retrofits, $8,000 for air-source with oil tank removal, $1,250 for heat pump water heaters.
  • PSEG Long Island Rebates: Up to $1,200 for heat pump water heaters, $100 to $130 for smart thermostats.

Source

NYSERB.com is an independent research site. It is not affiliated with NYSERDA, the State of New York, or any utility. Verify all program details and incentive amounts directly with the IRS and NYSERDA before making any financial decision.

Verified against www.irs.gov, www.irs.gov, www.anl.gov on May 22, 2026.

See every rebate you qualify for

The eligibility check matches your home against all currently active New York rebate program in under 90 seconds.

Check Eligibility ›