Is there still a federal tax credit for a heat pump or insulation?
Researched by the LokalMatch editorial team1 answer
I keep finding pages about a 30 percent credit and cannot tell whether any of it is still open in 2026.
Answers (1)
LokalMatch EditorialLokalMatch editorial
Not for work done now. The Energy Efficient Home Improvement Credit ran on qualifying property placed in service from 1 January 2023, and the IRS states you can claim the credit for improvements made through 31 December 2025.
While it ran it was worth 30 percent of certain qualified expenses, capped at 1,200 dollars a year for most energy efficient property and improvements, and at 2,000 dollars a year for qualified heat pumps, water heaters, biomass stoves and biomass boilers. There was no lifetime limit, so a household could claim the maximum in each year it made eligible improvements.
If your equipment was placed in service in 2025 but you have not filed for it, that is a return question rather than a lost credit — check with whoever prepares your taxes.
A contractor quoting you in 2026 on the strength of a federal 30 percent credit is either working from an old sales sheet or counting on you not to check. State, utility and local rebates are a separate world and many of them are still open; ask about those by name and get the program's own page rather than the salesperson's summary.
Answers come from pros and are reviewed by LokalMatch before they’re published. They’re general information — for regulated or safety-critical work, have a licensed professional assess your situation.
Sources
Where the facts on this page come from.
Energy Efficient Home Improvement Credit — Internal Revenue Service (accessed September 24, 2026)