Short answer: If you're filing a 2025 federal tax return in 2026, qualifying energy improvements placed in service during 2025 may still earn a federal tax credit. If the work was installed in calendar year 2026, don't assume you can claim the older 30% federal credit. State, utility and disaster-related programs may still provide help, but they follow different rules.

A home improvement also doesn't automatically create a tax refund. A credit reduces your federal income tax, a deduction reduces taxable income in limited situations, and a refund is the amount left after comparing your final tax with payments and withholding.

First, identify the tax year

The year you file your return isn't necessarily the year of the improvement.

The IRS Energy Efficient Home Improvement Credit guidance and ENERGY STAR's federal tax credit overview describe the main homeowner energy credits as available through 2025. An older article promising a 30% federal credit for every 2026 solar, window or heat-pump project is not a reliable basis for filing.

Federal energy credits that may be claimed in 2026

For most calendar-year taxpayers, a 2026 filing is the time to claim eligible improvements from 2025. The two federal residential credits are different, so keep their limits separate.

Energy Efficient Home Improvement Credit

The Energy Efficient Home Improvement Credit, commonly called section 25C, covered qualifying improvements to an existing U.S. home used as the taxpayer's principal residence. Under the current federal schedule, property placed in service after December 31, 2025 generally falls outside the credit.

For eligible 2025 work, the credit was generally 30% of qualified costs, subject to annual and item-specific limits. Examples included:

• Up to $1,200 in the general annual category for many qualifying improvements.
• Up to $2,000 for qualifying heat pumps and heat-pump water heaters.
• A possible combined annual maximum of $3,200 when a taxpayer qualifies for both categories.
• A $600 total limit for qualifying exterior windows and skylights.
• A $250 limit per exterior door, with a $500 total door limit.
• Insulation and air-sealing materials that meet the applicable building-code standards.

Technical details matter. Building-envelope components must generally have an expected life of at least five years. Windows and skylights must meet the applicable ENERGY STAR Most Efficient requirements, and insulation must meet the International Energy Conservation Code standard specified for the installation year.

The entire contractor invoice is not automatically eligible. A quote that says “30% tax credit” doesn't override the IRS product, installation, residence or timing requirements.

Residential Clean Energy Credit

The Residential Clean Energy Credit, section 25D, applied to qualifying residential clean-energy property placed in service under the applicable 2025 rules. It generally covered:

• Solar electric property.
• Solar water-heating property.
• Small wind energy property.
• Geothermal heat-pump property.
• Battery storage technology meeting the applicable capacity requirement.
• Qualified fuel-cell property.

The credit was generally 30% of qualifying costs for eligible 2025 installations. The IRS Instructions for Form 5695 include technical requirements, including rules for property type, capacity, installation and the residence where the equipment is used.

A system ordered in 2025 isn't automatically a 2025 credit. For a project that crossed into 2026, review when the property was placed in service, when qualifying expenditures were made and the instructions for the relevant tax year. Don't rely on the installation company's sales material alone.

Both credits are nonrefundable. They can reduce federal income tax, but they generally can't reduce that tax below zero. The two credits also don't have identical carryforward rules, so check the instructions for the exact year and credit rather than assuming unused amounts roll forward.

Why a tax credit may not equal your refund

A tax credit and a tax refund are connected, but they aren't the same thing.

Suppose your federal income tax before a nonrefundable credit is $2,000, and you have $4,000 in federal withholding. A $3,000 eligible credit could reduce the tax to zero, but it doesn't turn into a separate $3,000 payment. Your refund would depend on the $4,000 withholding and every other item on your return.

A tax deduction works differently. A $10,000 deduction doesn't reduce tax by $10,000; it reduces taxable income, and the value depends on the applicable rules and tax rate. Personal home improvements generally aren't immediately deductible just because they are expensive.

State, utility and home-energy rebates

A rebate is usually paid by a state agency, utility or program administrator, not by the IRS. Some programs provide point-of-sale discounts, while others reimburse you after an approved installation. Eligibility can depend on income, equipment, contractor status, property type, energy savings and available funding.

The HOMES and HEAR programs created under federal energy legislation are administered through participating states, territories and other program authorities. A federal program authorization doesn't guarantee that your state has launched a program, still has funding or accepts applications for your specific project.

Before signing a contract:

1. Check your state energy office and electric or gas utility.
2. Search the DSIRE database for state and local incentives.
3. Confirm whether preapproval, an energy audit or an approved contractor is required.
4. Ask whether the program applies to your income level and property type.
5. Get written confirmation of the rebate amount and deadline.
6. Ask how the rebate affects the cost used for any tax credit, depreciation or basis calculation.

Don't start work before approval if the program requires pre-installation authorization. Keep the application, award notice, itemized invoice, proof of payment and final inspection documents.

A rebate and a tax credit may sometimes be combined, but you shouldn't claim the same dollar twice without checking the program and tax rules.

Improvements that usually don't create a personal federal credit

The following expenses generally don't qualify for a broad personal home-improvement credit merely because they improve the property:

• Painting, flooring and ordinary cosmetic remodeling.
• A standard kitchen or bathroom renovation.
• Landscaping, fencing and swimming pools.
• Routine maintenance.
• A conventional roof replacement that doesn't meet a qualifying energy-property rule.
• Labor or materials that don't meet the requirements for the particular credit.

An energy-related component may qualify even when the surrounding remodel doesn't. For example, qualifying insulation or an eligible heat pump may have been covered under the 2025 rules, while cabinets, tile and general demolition were not.

Your own labor also isn't automatically a qualified expense. DIY materials may qualify when the product and installation meet the applicable requirements, but paid installation costs are included only where the specific credit allows them.

Rental properties, home offices and accessibility work

Rental properties

A landlord can't generally claim a personal-residence credit for a property rented entirely to tenants. Rental tax treatment normally separates:

• Repairs, which may be currently deductible when they are ordinary, necessary and don't improve, adapt or restore the property.
• Improvements, which generally must be capitalized and depreciated over the applicable recovery period.

Claiming that every rental improvement is a 100% deduction is incorrect. Keep separate invoices for repairs, appliances, structural work and energy equipment, and use the rental rules that apply to your ownership and use of the property.

A mixed-use property can require allocation between personal and rental portions. That is a good situation for a tax preparer or enrolled agent.

Home office

Working from home doesn't make a kitchen, bathroom or whole-house renovation deductible. A qualifying home-office deduction has its own business-use, exclusive-use and allocation rules. The personal portion of a remodel remains a personal expense.

Accessibility modifications

There is no general federal $15,000 lifetime credit for ramps, widened doors, grab bars or other ordinary accessibility modifications. A medically necessary modification may be relevant under medical-expense rules in limited circumstances, but that is not the same as a home-improvement credit and may require itemizing deductions.

Historic homes

A historic designation alone doesn't create a homeowner refund. The federal historic rehabilitation credit generally concerns certified historic structures used for income-producing purposes, not an ordinary owner-occupied remodel. State historic-property programs have separate eligibility rules.

Storm damage and emergency repairs

A storm repair is not automatically a tax credit. Start by documenting the damage and filing an insurance claim. Take photographs before repairs when it is safe, save adjuster reports and retain the settlement statement.

A personal casualty loss may be available when the damage is connected to a federally declared disaster and the applicable tax restrictions are met. It is generally based on the qualified loss, not simply the total repair invoice, and insurance reimbursements or expected reimbursements must be taken into account. Form 4684 may be involved.

Don't assume that an uninsured repair, deductible or temporary housing expense will produce a federal refund. The type of property, disaster designation, insurance payment and tax filing status all matter.

How to claim an eligible 2025 energy credit in 2026

Use this process if your project was eligible and placed in service during 2025:

1. Confirm the date. Determine when the equipment was installed and ready for use. Separate a 2025 project from work completed in 2026.
2. Identify the credit. Use the Energy Efficient Home Improvement Credit for qualifying efficiency improvements and the Residential Clean Energy Credit for qualifying clean-energy property.
3. Verify the exact product. Check the manufacturer's certification, model number, ENERGY STAR status or other technical requirement. Don't treat a contractor's general statement as proof.
4. Separate eligible costs. Break out equipment, materials and labor. The rules for labor differ by property type.
5. Collect records. Keep the final invoice, proof of payment, product documentation, installation date, permits or inspection records when available, and any rebate paperwork.
6. Complete Form 5695. Use the form and instructions for the tax year in which the eligible property was placed in service. Tax software may complete the form after you enter the project details.
7. Transfer the result to your federal return. The credit is reported with your Form 1040. It is not a separate IRS refund application.
8. Check your tax liability. A nonrefundable credit can't produce more federal income tax benefit than the rules allow for that year.
9. File the state or utility claim separately. Follow the program's deadline and submission instructions rather than adding the rebate to Form 5695.
10. Keep the records. Preserve tax documents for the applicable record-retention period, and keep improvement and basis records until the home is sold and the relevant tax period has ended.

If you already filed a 2025 return without a credit you were entitled to claim, use the IRS procedure for correcting that return. Don't move a missed 2025 credit onto a 2026 return simply because you discovered it later.

Examples of how the rules work

• Solar installed and placed in service in 2025: A $20,000 qualifying system could produce a potential $6,000 residential clean-energy credit before considering eligibility, tax liability and other adjustments.
• Windows installed in 2025: A $10,000 window project would not create a $3,000 credit if the applicable annual window limit is $600. The item limit controls.
• Solar installed in 2026: Don't claim the former 30% residential credit based only on an old webpage or a 2025 contract. Look for a current state or utility incentive and verify the federal position.
• Kitchen remodel: Cabinets and countertops generally don't create a personal federal credit. An eligible heat pump or insulation installed as part of the project must be evaluated separately.
• Rental roof replacement: The tax result depends on whether the work is a repair or improvement. It isn't automatically a current deduction or homeowner credit.

Records that help prevent a denied claim

Keep a folder containing:

• The signed contract and final itemized invoice.
• Manufacturer certification and model information.
• The date the equipment was placed in service.
• Proof of payment.
• Permits, inspection results and contractor credentials when relevant.
• Before-and-after photographs for major work.
• State, utility or insurance applications and decisions.
• A calculation showing how you separated eligible and ineligible costs.

Store records that support the home's adjusted basis, such as permanent improvements, even after the credit paperwork is no longer current. A future sale may make those records relevant.

Frequently asked questions

Can I claim a federal solar tax credit for a system installed in 2026?

Under the current federal schedule, don't assume the former residential solar credit applies to a 2026 installation. Check the latest IRS guidance and look separately for state or utility incentives.

Can I get a tax refund for a kitchen or bathroom remodel?

Usually not for a personal residence. A qualifying energy component may receive a credit under the rules for its tax year, while the rest of the remodel generally becomes part of the home's basis rather than an immediate deduction.

Do DIY home improvements qualify?

Qualifying products may be eligible even if you install them yourself, but your own labor generally isn't a qualified cost. Product specifications, residence requirements and timing still apply.

Can a landlord claim the Energy Efficient Home Improvement Credit?

A property rented entirely to others generally doesn't fit the personal-residence rules for that homeowner credit. Repairs, improvements, depreciation and any business incentive must be analyzed under rental-property rules.

Can storm repairs be deducted?

Not automatically. Insurance should be considered first, and a casualty loss may be possible for qualifying damage from a federally declared disaster. Form 4684 and other limits may apply.

For a 2025 project, start with the IRS Form 5695 instructions and your project records. For 2026 work, verify current federal guidance and any state or utility program before signing the next contract.