Energy Tax Credits for Home Upgrades: What Changed in 2026

By David Olson, Realtor · October 25, 2026 · 3 min read
Energy Tax Credits for Home Upgrades: What Changed in 2026
Twin Cities Property Finder · David Olson, Broker · License #BK3603584
Independent neighborhood guide, not affiliated with any homeowners association, property manager, city or official board.
Updated October 23, 2026
Twin Cities home, Twin Cities Property Finder
Practical notes for Twin Cities buyers, sellers and owners

For years, homeowners could claim a federal tax credit for energy-efficient upgrades like windows, insulation, doors and heating and cooling systems.

That has changed. The federal Energy Efficient Home Improvement Credit ended for improvements placed in service after December 31, 2025.

Here’s what that means now.

Planning energy upgrades?I’ll help you focus on the upgrades buyers value most.

What changed

Under the 2025 federal tax law, the Energy Efficient Home Improvement Credit (Section 25C) doesn’t apply to upgrades placed in service after 2025. If you finished qualifying work in 2025 or earlier, talk with your tax professional about whether you can still claim it for that year.

Other ways to save

  • Utility rebates: Many utilities offer rebates for efficient furnaces, heat pumps, insulation and more. Check with your electric and gas providers.
  • State and local programs: These come and go, so check current offerings.
  • Lower bills: Good insulation, air sealing and efficient equipment still pay you back every month.

Upgrades that help at resale

Buyers notice newer windows, mechanicals and a well-insulated attic. Super Crew Contractors can give you an estimate, and a fresh home value estimate can show what your home is worth today.

This is general information, not financial, tax or legal advice. Talk with your lender, CPA or attorney about your situation.

Disclosure: This article is general information, not tax, legal or financial advice. I’m a licensed real estate broker, not a tax professional. Tax laws change, so talk with a CPA or tax advisor about your situation before acting on anything here.

A simple plan for your energy-efficiency tax credits move

I’ve been helping people buy and sell homes across the west metro for about two decades, and I build and remodel luxury homes too. I’ll help you see both what a property is and what it could be.

1Get clear on the numbersFor sellers, a realistic value for your specific home. For buyers, what your budget actually buys in the neighborhoods you like.
2Walk it with a builder’s eyeWe spot what an inspector is likely to flag before it becomes a negotiation.
3Prepare or positionSellers get a prep list and a staging plan. Buyers get a short list of homes that truly fit.
4Move with confidenceOffers, inspections and closing, with one steady guide keeping it calm and on schedule.

Getting the house ready, or making it yours

If you’re selling and want repairs handled before buyers see them, Super Crew Contractors can give you an estimate. If you’re ready for something custom, Ivy Lane Homes does luxury home building and remodeling. And a quick coverage check with Intrinsic Insurance before closing can save you a surprise. For the local picture, read my Chaska homes guide or browse neighborhoods in Chanhassen and Victoria.

Your next step in energy-efficiency tax credits

Every move is different. When you’re ready to talk about yours, I’m a call or text away.

Please note: I don’t handle rentals or property management. I work with buyers and sellers, and that’s where I can help you most in energy-efficiency tax credits.

Twin Cities market notes

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