What Appliances Qualify for Energy Tax Credit in 2026? [Under IRS Form 5695]

Quick status update: The federal Energy Efficient Home Improvement Credit (25C) and Residential Clean Energy Credit (25D) expired for property placed in service after December 31, 2025, under the One Big Beautiful Bill Act. If you installed qualifying equipment in 2025, you can still claim it on your 2025 tax return using IRS Form 5695. This guide is for reference only. Always verify current status on IRS.gov and consult a tax professional before filing, since Liberty Home Guard does not provide tax advice.

If you’re searching for what appliances qualify for energy tax credit, here’s the short version: the federal credits mostly covered whole-home systems like heat pumps, insulation, and solar equipment, not everyday kitchen or laundry appliances. Below is a full breakdown of what qualified, what didn’t, how to file for a 2025 install, and where to look for savings now that the federal credits have expired.

Are Energy Tax Credits Still Available in 2026?

No, not for new installs. Both the Energy Efficient Home Improvement Credit (Section 25C) and the Residential Clean Energy Credit (Section 25D) expired for property placed in service or expenditures made after December 31, 2025.

If your qualifying equipment was installed and placed in service on or before that date, you can still claim it on your 2025 federal tax return during the 2026 filing season. If you’re installing new equipment in 2026, the federal credit will not apply.

Because tax law can change, verify the current status on the IRS website before you file or make purchasing decisions based on this guide.

For 2026 savings, look to:

• State energy office rebate programs
• Local utility rebates for high-efficiency equipment
• Federal HOMES and HEEHRA rebate programs, where still available in your state
• Manufacturer promotions and financing offers

What Appliances Qualify for Energy Tax Credit

The following categories historically qualified for federal credits when the equipment was purchased and placed in service by December 31, 2025. This section is a reference for what applied in 2025, not a guarantee of future eligibility.

Heating and Cooling Systems That Qualified

• Air source heat pumps
• Heat pump water heaters
• Certain central air conditioners meeting efficiency requirements
• Qualified furnaces and boilers
• Biomass stoves and boilers meeting a thermal efficiency rating of at least 75 percent

Home Envelope and Electrical Upgrades That Qualified

• Insulation materials and systems
• Exterior doors meeting ENERGY STAR requirements
• Windows and skylights meeting required specifications
• Certain electrical panel upgrades, when they met code and capacity thresholds tied to other qualifying improvements

Clean Energy Equipment That Qualified Under 25D

• Solar panels and solar water heaters
• Geothermal heat pumps
• Small wind energy equipment
• Fuel cells
• Residential battery storage, when it met eligibility requirements

Appliances That Do Not Qualify for Energy Tax Credit

This is often the most confusing part for homeowners. The federal credits were built around whole-home systems and building envelope improvements, not most standalone appliances. The following typically did not qualify under 25C or 25D:

• Refrigerators
• Dishwashers
• Clothes washers and dryers
• Microwaves
• Stoves and ovens

If a retailer or contractor told you one of these items qualified for a federal tax credit, double-check that claim against the IRS category list before you file. Some state or utility rebate programs cover different appliances than the federal credit did, so it’s worth checking those separately.

Since these everyday appliances rarely qualify for a tax break, many homeowners look at does a home warranty cover appliances as a more reliable way to budget for eventual repairs or replacement.

Heat Pump Tax Credit Explained

The 25C heat pump credit was one of the most commonly claimed provisions. Historically:

• Homeowners could claim up to $2,000 per year for qualified heat pumps or heat pump water heaters
• Equipment had to meet the efficiency tiers in effect at the time of installation
• This credit fell under the broader $3,200 annual cap for combined 25C improvements

If you installed a heat pump in 2025, confirm the model met the required efficiency rating and keep your documentation. New heat pump installs in 2026 are not eligible under the expired federal credit, though state or utility rebates may still apply. For a closer look at how this shift affects HVAC upgrades specifically, see our HVAC tax credit 2026 guide.

Solar Panel Tax Credit Explained

The Residential Clean Energy Credit (25D) covered 30 percent of the cost of qualified residential clean energy equipment placed in service through 2025. This historically included:

• Solar panels
• Solar water heaters
• Geothermal heat pumps
• Small wind equipment
• Eligible battery storage

Expenditures made after December 31, 2025 are not eligible under the now-expired 25D credit. If you’re planning a 2026 solar install, ask your installer about state incentives, net metering programs, or utility-specific solar rebates instead.

IRS Form 5695: How to File in 2026 for 2025 Installs

If your equipment was placed in service by December 31, 2025, you can still claim it using IRS Form 5695 on your 2025 return.

What You Can Still Claim

Only equipment that met the qualifying criteria and was placed in service on or before December 31, 2025.

Documentation Checklist

Before you file, gather:

• Itemized invoices showing the placed-in-service date
• The manufacturer’s certification statement or manufacturer data proving the equipment met efficiency requirements
• Model numbers and efficiency ratings
• Contractor statements, if applicable to your installation

Step-by-Step Form 5695

1. Part I covers the Residential Clean Energy Credit (25D) amounts, such as solar and geothermal equipment
2. Part II covers the Energy Efficient Home Improvement Credit (25C) amounts, such as heat pumps, insulation, and qualifying doors and windows
3. Apply the annual caps and per-item limits that were in effect for 2025
4. Transfer your final credit amount to your Form 1040
5. Save all supporting records for at least three years in case of an audit

Common Filing Mistakes to Avoid

• Claiming appliances that never qualified under the federal credit
• Missing the placed-in-service deadline of December 31, 2025
• Using cost estimates instead of final, itemized invoices
• Forgetting to keep the manufacturer certification statement on file

2026 Options if Federal Credits Are Expired

State and Utility Rebates

Many state energy offices and local utilities run their own rebate programs, separate from the federal credit. Check for active rebates on heat pumps, heat pump water heaters, insulation, and broader weatherization upgrades.

HOMES and HEEHRA Programs

Some states have rolled out federally funded HOMES and HEEHRA rebate programs, though availability varies by location and program funding status. Covered categories in these programs can include heat pumps, certain electric cooktops, insulation, and whole-home efficiency upgrades. Check with your state energy office for current program status.

Energy credits are just one piece of the picture. For a broader look at deductions and credits available to homeowners, see tax benefits of homeownership.

How Liberty Home Guard Helps Protect Your Upgrades

Whether or not a system or appliance qualified for a federal tax credit, it still faces normal wear and tear over time. After investing in a new heat pump, water heater, or major appliance, a home warranty plan can help you manage the cost of covered repairs or replacement when something breaks down.

Liberty Home Guard’s Appliance Guard home warranty for appliances is built to help with covered breakdowns on major kitchen and laundry appliances like the ones outlined above, while a systems plan can extend protection to home systems such as HVAC.

If you have a second fridge, stand-alone freezer, or other extra appliance you’d like covered, you can also look into optional add-ons for extra appliances to expand your plan.

If you own higher-end or Pro-Series appliances, you may need an optional Pro-Series add-on for full coverage. You can review exclusions and terms in the Liberty Home Guard sample policy. Coverage applies to breakdowns caused by normal wear and tear, per your policy terms, and plans include 24/7 claims support so you’re not stuck waiting when something goes wrong.

Final Thoughts

The federal Energy Efficient Home Improvement Credit and Residential Clean Energy Credit expired for property placed in service after December 31, 2025. If you installed qualifying heat pumps, insulation, windows, doors, solar equipment, or other eligible systems in 2025, you can still claim that credit on your 2025 return using IRS Form 5695. For 2026 upgrades, federal credits are no longer an option, so look to state energy offices, local utilities, and manufacturer incentives instead.

Once your upgrades are in place, a Liberty Home Guard plan can help protect your investment against the normal breakdowns that come with everyday use. Get a quote to see which plan fits your home.

This article is for general information only and is not tax advice. Consult the IRS and a qualified tax professional for guidance specific to your situation.