The home energy tax credit is gone, but help paying for home energy upgrades still exists in 2026, worth 369 million dollars

Help paying for home energy upgrades still exists in 2026

A homeowner asking whether there is still help paying for home energy upgrades now that the tax credit is gone has one answer, a federal program called the Weatherization Assistance Program. It is not a tax credit, nobody files for it on a tax return, and it is not open to every household. Instead the United States Department of Energy funds the actual work, sealing air leaks and adding insulation among the repairs, and pays a local provider to do it for a qualifying household.

Two home energy tax credits ended December 31, 2025

Two federal tax credits for home energy upgrades ended December 31, 2025, under the law the Internal Revenue Service calls Working Families Tax Cuts and most people know as the One, Big, Beautiful Bill Act, signed July 4, 2025. Section 70505 ended the Energy Efficient Home Improvement Credit, which paid 30% of the cost of a heat pump, water heater, or biomass stove, up to 2,000 dollars a year, plus 30% up to 1,200 dollars combined for windows, doors, and a home energy audit, shown in the chart below. Section 70506 ended the Residential Clean Energy Credit, which paid 30% of the cost of solar panels, wind equipment, geothermal heat pumps, and battery storage, with no yearly cap. The Internal Revenue Service own page for that credit still says, in language nobody updated after the 2025 law, that it does not begin to phase out until 2033, a leftover of the 2022 schedule the new law cut off eight years early.

Who qualifies and how to apply

A household qualifies if its income is at or below 200% of the federal poverty guidelines, or if someone in it receives Supplemental Security Income, the standard the Department of Energy uses. A state may instead set its own limit at 60% of that state median income. To apply, a homeowner contacts a state weatherization administrator or a local community action agency, submits proof of income such as pay stubs or a Social Security statement, then waits for income verification and a place on the agency waiting list. A renter needs permission from the landlord before any work can start.

What the program is worth and what it saves

The fiscal year 2026 appropriations bill President Trump signed into law on January 23, 2026, funds the Weatherization Assistance Program at 369 million dollars, an increase of 3 million dollars over fiscal year 2025, according to the Building Performance Association. The same bill also funds 3 similar Department of Energy and Environmental Protection Agency programs, shown in the chart below. The Department of Energy says an eligible household saves approximately 372 dollars a year on its energy bills once the work is done, and that the program has assisted more than 7.2 million families since 1976, weatherizing about 32,000 homes a year and supporting about 8,500 jobs nationwide.