Home Energy Tax Credits 2025: What Ended & What’s Left
If you’re searching for home energy tax credits in 2025 or considering upgrades in 2026, you need to know about major changes. Congress ended most residential energy credits after December 31, 2025, via the One Big Beautiful Bill Act (OBBBA). This in-depth guide explains what changed, which credits are gone, what’s still available to business owners, and how to plan for your next energy-saving investment.
Table of Contents
- Key Takeaways
- Which Home Energy Credits Expired in 2025?
- What Energy Credits Are Still Available in 2026?
- Important 2026 Safe Harbor Deadlines
- How Will These Changes Affect Energy Costs?
- Business Owner Planning Example
- Related Resources
- Frequently Asked Questions
Key Takeaways
- The major home energy tax credits (25C & 25D) ended after December 31, 2025.
- Business energy credits remain, but there are new deadlines for starting commercial projects.
- Battery storage and geothermal systems remain eligible into the 2030s.
- Consult a tax advisor to maximize deduction strategies under the new law.
Which Home Energy Credits Expired in 2025?
Congress passed the OBBBA in 2025, eliminating the following federal credits for home improvements and clean energy after Dec 31, 2025:
| Credit | Covered Expenses | Final Year |
|---|---|---|
| 25C (Energy Efficient Home Improvement Credit) | Insulation, windows, doors, HVAC | 2025 |
| 25D (Residential Clean Energy Credit) | Solar, batteries, geothermal | 2025 |
| EV (Electric Vehicle) Credit | New and used electric vehicles | 2025 |
See the IRS home energy tax credits page for official updates.
What Energy Credits Are Still Available in 2026?
After the 2025 sunset, only certain business credits and long-term incentives remain:
- Section 48E Investment Tax Credit for business solar (deadline applies)
- Bonus tax credits for battery storage and geothermal (through 2034)
- Enhanced bonus depreciation on energy equipment
Project deadline is key. The safe harbor to ‘begin construction’ for commercial projects is July 4, 2026. Learn more from the DOE guide.
Important 2026 Safe Harbor Deadlines
Free Tax Write-Off Finder| Project Type | Safe Harbor Deadline | Credit Available |
|---|---|---|
| Commercial Solar | July 4, 2026 (Start Construction) | Possible until 2027 placed-in-service, then phases out |
| Battery Storage | 2034 | Full 30% credit remains |
| Geothermal | 2034 | Full 30% credit remains |
How Will These Changes Affect Energy Costs?
Because credits have ended, project costs are expected to rise for those installing upgrades in 2026 or later. This could increase utility rates for businesses and homeowners as developers pass along their lost incentives. It may also shift interest toward battery and geothermal projects, which retain strong credits through 2034. Have your CPA or financial advisor analyze the impact on your contracts and projected expenses.
Business Owner Planning Example
Client: Sarah, S-Corp owner, planned to add 100kW of solar and batteries to her workshop in early 2026.
Challenge: The new 2025 law made her uncertain about the credit timeline.
Solution: By breaking ground before July 4, 2026, and prioritizing batteries (which keep credits through 2034), Sarah locked in a $48,000 tax credit and large bonus depreciation in 2026. If she had waited, she would have missed the window entirely.
Tip: For St. Petersburg, Florida business owners, use our LLC vs S-Corp Tax Calculator to analyze impacts to your business.
Related Resources
- Uncle Kam Tax Strategy Blog
- Tax Support for Business Owners
- Uncle Kam Tax Calculators
- ENERGY STAR Tax Credits
Frequently Asked Questions
Can I still claim a home energy credit for a project finished in 2025?
Yes, if you placed the equipment in service or contracted before the end of 2025, you may be able to claim credits on your 2025 tax return.
What’s the July 4, 2026 deadline?
This is the final date to ‘begin construction’ on business solar and wind projects in order to qualify for phased-out credits.
Do battery storage and geothermal still qualify after 2025?
Yes, both technologies retain the full 30% credit through 2034.
Will utility bills likely rise because credits ended?
Most analysts expect a modest increase in project costs and possibly higher utility rates, especially for new long-term contracts.
Last updated: July 2026 – For the latest, always check IRS.gov before making energy upgrades.
