Key Takeaways
- The 2025 federal tax law (the “One Big Beautiful Bill Act”) ended most of the energy tax credits homeowners relied on; they weren’t just adjusted, they expired.
- Federal home-improvement credits (solar, windows, doors, HVAC) are gone for anything installed after December 31, 2025.
- The federal EV tax credit ended for vehicles acquired after September 30, 2025. If you made qualifying purchases before those cutoffs, you may still claim the credit on your 2025 tax return.
- Texans can still save through the annual ENERGY STAR sales tax holiday, local utility efficiency programs, and state-administered home energy rebates — check current availability.
- Rules change fast. Confirm details with a tax professional and official government sources before you buy or file.
Tax season has a way of sending everyone hunting for savings, and for years, energy-efficiency upgrades came with a nice federal reward. That picture changed in 2025. A major federal tax law reshaped (and in most cases ended) the credits that once helped cover solar panels, efficient appliances, and electric vehicles. If you’re reading an older guide that says these credits are “available but change annually,” it’s out of date. Here’s where things actually stand in 2026, and how Texans can still keep money in their pockets.
What changed for tax credits in 2025?
In July 2025, the One Big Beautiful Bill Act (Public Law 119-21) set hard end dates for the main consumer energy credits. The big ones:
- Energy Efficient Home Improvement Credit (Section 25C)
- Covered energy-efficient windows, exterior doors, insulation, and qualifying HVAC systems.
- No credit for property placed in service after December 31, 2025.
- Residential Clean Energy Credit (Section 25D)
- 30% credit for home solar panels, solar water heaters, and battery storage.
- No credit for expenditures made after December 31, 2025.
- New Clean Vehicle Credit (Section 30D) and Used Clean Vehicle Credit (Section 25E)
- the EV and plug-in hybrid credits (up to $7,500 new / $4,000 used)
- No credit for vehicles acquired after September 30, 2025.
In plain terms: for purchases and installations made in 2026 or later, these federal credits are no longer available.
Can I still claim any of these tax credits?
Possibly, if your timing beat the deadline. These credits are claimed for the tax year the purchase or installation happened. So if you installed solar or made qualifying home improvements on or before December 31, 2025, or acquired an eligible EV on or before September 30, 2025, you can still claim the credit on your 2025 federal return. You can’t claim any of them for a 2026 purchase. Because eligibility depends on exact dates, dollar limits, and paperwork, this is the moment to check with a tax professional rather than guess.
Does Texas still offer energy savings?
Yes! Start with the Texas sales tax holiday. Texas doesn’t offer its own state income-tax credit (Texas has no state income tax), but it does run an annual ENERGY STAR Sales Tax Holiday over Memorial Day weekend; it ran May 23–25, 2026, and typically returns the same weekend each year. During the holiday, you pay no state sales tax on qualifying ENERGY STAR–labeled products, with no limit on how many you buy.
Qualifying items include:
- Air conditioners priced at $6,000 or less
- Refrigerators priced at $2,000 or less
- Ceiling fans
- Clothes washers
- Dishwashers
- Dehumidifiers
- Incandescent and fluorescent light bulbs
A few common items don’t qualify even with an ENERGY STAR label: water heaters, clothes dryers, freezers, stoves, and heat pumps. For air conditioners and refrigerators, the price cap applies to the total sales price, including delivery and installation, so factor those in. Always check the Texas Comptroller’s website for the current year’s dates and full rules.
What other Texas energy savings are available in 2026?
Beyond the sales tax holiday, a few programs are worth checking:
- Utility (TDU) efficiency programs. Texas transmission and distribution utilities (like Oncor, CenterPoint, AEP Texas, and TNMP) run energy-efficiency programs that offer rebates on things like smart thermostats, insulation, and HVAC upgrades, usually through participating contractors. Availability and amounts vary by service area and reset each program year.
- State-administered Home Energy Rebates. Texas’s State Energy Conservation Office (SECO), part of the Texas Comptroller, will administer two federally funded rebate programs:
- HOMES (up to $8,000 for whole-home efficiency upgrades, all income levels)
- HEAR (up to $14,000 for income-qualified households)
- As of 2026, these programs are still in the planning and design phase and not yet open to Texas residents — no launch date has been set. Check SECO’s official Home Energy Rebates page for the latest status.
- Water-efficient products holiday. Texas holds a Water-Efficient Products Sales Tax Holiday the same Memorial Day weekend, covering items like WaterSense-labeled products and certain water-conserving supplies.
Because these programs open, close, and refill on their own schedules, confirm current availability directly with the utility or agency before you buy.
What’s the bottom line?
The generous federal energy credits of recent years have largely sunset, so the smartest move in 2026 is to focus on savings you can still act on: the Texas sales tax holiday, utility rebates, and any state programs that are currently open. Also claim any 2025 federal credits you already earned before the deadlines. Rules and dollar limits change often, and the penalty for getting it wrong isn’t worth the risk. Check with a tax professional and official government sources for the latest details, and keep looking for everyday ways to reduce your energy usage so you save all year long — not just at tax time.
Frequently Asked Questions
No, under the 2025 One Big Beautiful Bill Act, the federal home-improvement and solar credits ended for property placed in service after December 31, 2025, and the EV credits ended for vehicles acquired after September 30, 2025. They are not available for purchases made in 2026 or later.
Only if your solar expenditures were made on or before December 31, 2025. In that case you may claim the Residential Clean Energy Credit on your 2025 federal return. Solar installed in 2026 or later does not qualify for the federal credit.
The federal new and used clean vehicle credits ended for vehicles acquired after September 30, 2025. Vehicles acquired on or before that date may still qualify, subject to the usual income and vehicle requirements.
It’s an annual weekend (Memorial Day weekend, May 23–25 in 2026) when Texas waives state sales tax on qualifying ENERGY STAR products, including air conditioners priced at $6,000 or less, refrigerators priced at $2,000 or less, and items like clothes washers, dishwashers, dehumidifiers, ceiling fans, and light bulbs.
Texas doesn’t have a state income-tax credit, but Texans can access utility-run efficiency rebate programs and the annual sales tax holidays and, once they launch, federally-funded home energy rebates (HOMES and HEAR) being developed by the State Energy Conservation Office, which are still in planning as of 2026. Availability varies, so check with your utility and the Texas Comptroller for current details.