Home energy tax credits in 2026:
what ended and what Washington homeowners can still use
IS THERE A TAX CREDIT FOR A HEAT PUMP, WINDOWS OR SOLAR IN 2026?
The IRS says the Energy Efficient Home Improvement Credit (section 25C) isn't allowed for property placed in service after December 31, 2025, and the Residential Clean Energy Credit (section 25D, for solar and similar systems) isn't allowed for expenditures made after that date. For 25D, an expenditure counts as made when installation is completed, so a job paid in 2025 but finished in 2026 doesn't qualify. Utility rebates from PSE and Seattle City Light are separate and still listed.
What ended
| Credit | Covered | Ended |
|---|---|---|
| Energy Efficient Home Improvement Credit (25C) | Energy-efficient home improvements | Not allowed for property placed in service after December 31, 2025 |
| Residential Clean Energy Credit (25D) | Home clean energy systems such as solar | Not allowed for expenditures made after December 31, 2025 |
Why the installation date matters
- 25D: the IRS says "an expenditure with respect to an item is treated as made when the original installation of the item is completed." If installation finished after December 31, 2025, the credit isn't available, even if you paid by December 31.
- 25C: the test is when the property was "placed in service."
- 2025 projects: if your work was finished in 2025, ask a tax professional whether it qualifies on your 2025 return.
What's still available in Washington
| Program | What it offers |
|---|---|
| PSE weatherization rebates | Attic insulation $1.75/sq ft up to $3,500 (R-11 or less to R-49); walls and floors $2.50/sq ft up to $5,000; for homes heated mainly by PSE, through a PSE network contractor |
| Seattle City Light HomeWise Weatherization | Free efficiency improvements, including insulation and heat pumps, for income-qualified households |
| Heat pump rebates | PSE, City Light and Tacoma Power programs: see heat pump rebates in Washington |
| Property tax exemption | A qualifying remodel or addition can be exempt for 3 years: see the home improvement property tax exemption |
Related costs: attic insulation, heat pump installation, gas furnace to heat pump and window replacement in Seattle.
Frequently asked questions
Is there a federal tax credit for a heat pump in 2026?
No. The IRS says the Energy Efficient Home Improvement Credit isn't allowed for property placed in service after December 31, 2025.
Can I still get the solar tax credit in 2026?
No, for new installations. The IRS says the Residential Clean Energy Credit isn't allowed for expenditures made after December 31, 2025, and an expenditure counts as made when installation is completed.
I paid in 2025 but the installation finished in 2026. Do I qualify?
Not for the 25D credit: the IRS says the expenditure is treated as made when installation is completed, so it counts as a 2026 expenditure even if you paid in 2025. For 25C, the test is when the property was placed in service.
Are there still energy rebates in Washington?
Yes, from utilities. PSE lists weatherization rebates for homes it heats, and Seattle City Light lists free weatherization for income-qualified households. Programs can change, so check before you sign a contract.
When did the federal energy credits end?
December 31, 2025, under Public Law 119-21 (the One Big Beautiful Bill Act), according to the IRS.
Sources
- IRS — FAQs on the termination of energy credits (FS-2025-05, August 21, 2025)
- Puget Sound Energy — Weatherization rebates
- Seattle City Light — New year, new savings (January 9, 2026)
- RCW 84.36.400 — Improvements to single-family dwellings
All sources accessed November 10–11, 2026.
This guide summarizes IRS information and utility programs. It is not tax advice. Check with a tax professional, and confirm rebates with your utility before work starts. See our disclosure and disclaimer.