If you searched for home improvement tax credits 2026 expecting the same generous federal incentives from recent years, there’s important news: several major credits have expired. At SATX Remodeling, we think it’s more useful to give homeowners an accurate picture than to repeat outdated advice, so here’s what’s actually available in 2026, both at the federal level and here in San Antonio specifically.
What Changed: Federal Credits That Expired
Energy Efficient Home Improvement Credit (Section 25C)
This credit, which covered insulation, windows, doors, and HVAC upgrades, expired for projects placed in service after December 31, 2025, under recent federal legislation. If you completed qualifying work in 2025, you may still be able to claim it on your 2025 return, but it is no longer available for new 2026 projects.
Residential Clean Energy Credit (Section 25D)
This credit covered solar panels, solar water heaters, and battery storage. Like Section 25C, it is no longer available for systems installed in 2026 or later.
What’s Still Active Federally
The New Energy Efficient Home Credit (Section 45L), aimed at builders of new energy-efficient homes, remains available only through June 30, 2026, and primarily benefits builders rather than homeowners remodeling an existing property. Current details and forms for any credits you may still be eligible to claim on a prior year’s return are available directly from the IRS.
What’s Still Available in San Antonio: CPS Energy Rebates
While federal tax credits have narrowed, San Antonio homeowners still have access to meaningful local incentives through CPS Energy’s SaveNow rebate programs, which operate independently of federal tax law.
HVAC and Heat Pump Rebates
CPS Energy offers tiered per-ton rebates for qualifying high-efficiency central air conditioners and heat pumps, with higher efficiency ratings earning larger rebates.
Attic Insulation Rebates
Rebates are available per square foot for qualifying attic insulation upgrades, an upgrade we often discuss alongside remodel projects involving attic access or whole-home efficiency improvements.
Smart Thermostats and Other Upgrades
CPS Energy also offers rebates for smart thermostats, pool pumps, and other efficiency measures, with dozens of rebate programs available to residential customers.
Casa Verde Weatherization Program
For income-qualified households, CPS Energy’s Casa Verde program provides significant free weatherization services, including attic insulation, air sealing, and AC tune-ups.
Texas Property Tax Considerations
Texas offers a property tax exemption for the added value of a solar energy system, meaning installing solar doesn’t automatically increase your property’s taxable value the way some other improvements might. Details on this exemption are available through the Texas Comptroller’s office.
Finding Other State and Local Incentives
Incentive programs change frequently and vary by utility and municipality. The Database of State Incentives for Renewables and Efficiency (DSIRE) is a reliable, regularly updated source for checking current state and local programs beyond what’s covered here.
How This Affects Remodel Planning in 2026
With fewer federal credits available, the financial case for efficiency upgrades now rests more heavily on CPS Energy rebates, long-term utility savings, and overall remodel value rather than a federal tax credit offsetting the upfront cost. This doesn’t make efficiency upgrades a bad investment, it just means the math looks different than it did in 2024 or 2025. If you’re weighing financing options for a broader remodel, see our guide to financing a home remodel.
Frequently Asked Questions
Are there still federal tax credits for home improvements in 2026?
Most major federal residential energy credits (Sections 25C and 25D) expired for projects placed in service after December 31, 2025. Some credits may still apply to qualifying 2025 projects claimed on a 2025 tax return.
Can I still get rebates for energy-efficient upgrades in San Antonio?
Yes. CPS Energy’s SaveNow program continues to offer rebates for HVAC systems, attic insulation, smart thermostats, and other upgrades, independent of federal tax credit changes.
Does installing solar panels increase my property taxes in Texas?
Texas offers a property tax exemption for the added value of a solar energy system, so the improvement itself generally doesn’t increase your taxable property value.
Where can I check for current incentive programs?
The Database of State Incentives for Renewables and Efficiency (DSIRE) is a reliable source for current state and local program details, alongside CPS Energy’s own rebate program pages.
Should I still do energy-efficient upgrades without a federal tax credit?
Many efficiency upgrades still make financial sense through utility rebates and long-term energy savings, even without a federal tax credit offsetting the upfront cost.
Plan Your Remodel With Accurate Information
Incentive programs shift often, and the SATX Remodeling team stays current on what’s actually available so your project budget reflects reality, not outdated assumptions. Reach out today to talk through your remodel plans.