What the OBBBA Eliminated (Read This First)
The One Big Beautiful Bill Act eliminated two major federal home energy tax credits effective December 31, 2025. This is the single biggest change for homeowners in 2026. Section 25C, the Energy Efficient Home Improvement Credit, is expired. It covered 30 percent of costs up to $3,200 per year for insulation, windows, doors, and HVAC systems. The OBBBA substituted "placed in service after December 31, 2025" for the previous expiration date of December 31, 2032. If you installed qualifying equipment by December 31, 2025, you can still claim the credit on your 2025 tax return. Equipment placed in service January 1, 2026 or later does not qualify. Section 25D, the Residential Clean Energy Credit, is also expired. It covered 30 percent of costs for solar panels, geothermal heat pumps, and battery storage with no annual dollar cap. Same cutoff: equipment must have been placed in service by December 31, 2025. Section 45L, the New Energy-Efficient Home Credit for builders, expires June 30, 2026. These were the most widely used federal programs for home energy improvements. Their elimination means the remaining options, covered below, become significantly more important for homeowners who need help with repairs or energy costs.
USDA Section 504: The Only Direct Federal Home Repair Grant
The USDA Single Family Housing Repair program (Section 504) is the only federal program that directly gives grant money to individual homeowners for home repairs. It has two components. Loans go up to $40,000 at 1 percent fixed interest over a 20-year term. Any homeowner meeting income requirements can apply regardless of age. Grants go up to $10,000 lifetime and are exclusively for homeowners age 62 or older who cannot repay a loan. In presidentially declared disaster areas, the grant maximum increases to $15,000. The combined maximum is $50,000 per household ($55,000 in disaster areas). Income eligibility: household income must be at or below 50 percent of your county's Area Median Income. Income is adjusted, meaning deductions are allowed for dependents, medical expenses, and elderly status. Property requirements: you must own and occupy the home as your primary residence, and the property must be in a USDA-eligible rural area. Many people are surprised by what qualifies as rural. Check your address at eligibility.sc.egov.usda.gov. Towns with populations up to 35,000 often qualify. Loans can be used for repairs, modernization, or removing health and safety hazards. Grants are limited to removing health and safety hazards only, not cosmetic improvements. A Materials Pilot Program launched in December 2024 expedites repairs by resolving contractor payment delays that plagued the program in some regions. Applications are rolling (not competitive rounds) and processed locally. Contact your local USDA Rural Development office at rd.usda.gov. There is no national application portal.
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Weatherization Assistance: Free Home Energy Work (Not a Cash Grant)
The DOE Weatherization Assistance Program does not give you money. It sends a certified energy auditor to your home and then contracts the work to be done for free. This distinction matters because many people search for "weatherization grants" expecting cash. FY2026 funding is $326 million for the core program plus $30 million in readiness funds. Approximately 32,000 households are served annually through DOE funding, though states supplement with LIHEAP funds. What you get: a professional energy audit followed by contracted work including attic, wall, and floor insulation, air sealing, HVAC tune-up or replacement, duct sealing, health and safety improvements, and window and door repairs. Income eligibility uses whichever threshold is higher in your state: at or below 200 percent of the Federal Poverty Level, or at or below 60 percent of your state's median income. For reference, the 200 percent FPL threshold for a family of four is approximately $62,400 in 2026. Both homeowners and renters qualify. Renters need their landlord's agreement. Priority groups: elderly households, households with disabled members, families with children, and high energy burden households (those spending a disproportionate share of income on energy). The catch: demand consistently exceeds supply. Most states have waitlists ranging from weeks to over a year depending on your area. Apply early. How to apply: visit energy.gov/scep/wap/how-apply-weatherization-assistance, use the state map to find your local Community Action Agency, and submit income documentation. Your local agency determines eligibility and manages the waitlist.
IRA Home Rebates: The Tax Credits Died But These Survived
The Inflation Reduction Act created two rebate programs that are distinct from the expired tax credits. The OBBBA did not eliminate these because they operate through state energy offices as direct rebates, not through the tax code. The HOMES program (Home Owner Managing Energy Savings) has $4.3 billion nationally. Rebates range from $2,000 to $4,000 for moderate energy savings (20 percent or more reduction) and up to $8,000 for significant savings (35 percent or more). Low and moderate income households, defined as below 80 percent or 80 to 150 percent AMI, receive double the rebate amounts. Any income level can qualify, but lower-income households get larger rebates. The program focuses on whole-home retrofit packages, not individual appliances. The HEAR program (High Efficiency Electric Home Rebate Act) has $4.5 billion nationally and is income-limited to households below 150 percent AMI. Low-income households (below 80 percent AMI) can receive up to 100 percent of project costs. Moderate-income households (80 to 150 percent AMI) receive up to 50 percent. The maximum per household is $14,000 across specific per-item caps: heat pump HVAC up to $8,000, heat pump water heater up to $1,750, electric panel upgrade up to $4,000, electrical wiring up to $2,500, insulation and air sealing up to $1,600, electric stove up to $840. State rollout status as of February 2026: active programs exist in Arizona, California (partially, some regions are fully reserved), Colorado, Georgia, Maine, Michigan, New Mexico, North Carolina, New York, Rhode Island, Washington DC, and Wisconsin. Oregon, Connecticut, and Tennessee expect to launch in 2026. California's HEEHRA program is fully reserved in Central and Southern regions. These rebates are often applied at point-of-sale by registered contractors. Search your state energy office website or check rewiringamerica.org/research/ira-guide for your state's status.
CDBG Home Repair: Federal Money, Local Administration
The Community Development Block Grant program distributes billions in annual federal funding to cities and counties, some of which is used for home repair programs. But there is no way to apply to HUD directly for home repairs. How it works: HUD gives CDBG funding to entitlement communities (cities and urban counties over roughly 50,000 population) which run their own programs, and to states which distribute to smaller communities. The local government or a subgrantee nonprofit then decides whether to run a home repair program, what it covers, and who qualifies. Income eligibility: at least 51 percent of CDBG beneficiaries must be low or moderate income (at or below 80 percent AMI). Most home repair programs target this population. The catch: not every jurisdiction uses CDBG for home repair. Some use it for public infrastructure, economic development, or other eligible activities. Availability is entirely dependent on your local government's priorities. How to find out: call your city or county housing department and ask if they have a homeowner rehabilitation or home repair program funded by CDBG. If they cannot answer, contact your HUD field office. Do not apply to HUD directly.
VA Housing Grants for Disabled Veterans
The Department of Veterans Affairs offers the most generous home modification grants in the federal government for qualifying veterans. The Specially Adapted Housing (SAH) Grant provides up to $126,526 in FY2026 for veterans with permanent and total service-connected disabilities including loss or loss of use of both legs, both arms at or above the elbow, blindness in both eyes with loss of one leg, severe burns covering 30 percent or more of the body, or certain severe respiratory injuries. Veterans can use SAH up to 6 times. A Temporary Residence Adaptation sub-grant provides up to $50,961. The Special Home Adaptation (SHA) Grant provides up to $25,350 for veterans with certain blindness conditions, loss or loss of use of both hands, certain respiratory conditions, or lesser burn injuries. The TRA sub-grant is up to $9,100. The HISA Grant (Home Improvement and Structural Alterations) is separate from SAH and SHA: up to $6,800 for service-connected conditions and $2,000 for non-service-connected conditions requiring accessibility modifications. Apply through VA.gov or contact your nearest VA regional office. These grants can be applied for at any time; there are no competitive cycles or application windows.
State Programs Worth Knowing About
State programs vary widely but several offer substantial assistance. Florida's My Safe Florida Home Program has $280 million allocated for hurricane hardening. Grants cover up to $10,000 per home with a 2-for-1 state match (state pays $2 for every $1 you spend). Low-income applicants at or below 80 percent county median income are exempt from the match requirement and the $700,000 insured value cap. Properties must be single-family, owner-occupied, with homestead exemption, built before January 1, 2008. Eligible improvements include impact-resistant windows and doors, roof covering and deck attachment, and roof-to-wall connections. A free wind mitigation inspection is included. Applications are first-come, first-served at mysafefloridahomeprogram.org. New York's Targeted Home Improvement Program (T-HIP) provides grants up to $40,000 per household for homeowners at or below 80 percent AMI. It covers ADA improvements, roof repairs, code violations, and utility upgrades. The RESTORE program covers emergency repairs for households at or below 100 percent AMI. Both are administered through NY Homes and Community Renewal. Texas TDHCA Homeowner Reconstruction Assistance provides full reconstruction of severely deteriorated homes through HUD HOME funds for households at or below 80 percent AMI. Not available in all areas; contact TDHCA to find participating organizations. Michigan MSHDA offers up to $25,000 for health, safety, and disability-related repairs for low-income homeowners. Florida also has the SHIP program (State Housing Initiatives Partnership) in all 67 counties providing emergency repair grants up to $10,000 for low-income applicants through county housing offices.
How to Find What Is Available in Your Area
Start with the federal programs that have the clearest eligibility criteria. Check your USDA rural eligibility at eligibility.sc.egov.usda.gov. If your address qualifies, contact your local USDA Rural Development office about Section 504. For weatherization, visit energy.gov/scep/wap/how-apply-weatherization-assistance and contact your local Community Action Agency. For IRA home rebates, check your state energy office website or rewiringamerica.org/research/ira-guide to see if your state has launched. For CDBG and local programs, call your city or county housing department. If you cannot find the right contact, call 211 (national hotline) or visit 211.org. Trained specialists connect callers to local assistance programs including home repair grants. For VA grants, apply directly at VA.gov. For the FHA 203(k) rehabilitation loan (not a grant but a way to finance repairs), find an FHA-approved lender at hud.gov/program_offices/housing/sfh/203k. A Limited 203(k) covers projects under $35,000 with a simpler process. The Standard 203(k) covers larger projects but requires a HUD-approved consultant. Also see our energy funding guide for the broader energy incentive picture, our small business grants guide for business-related programs, and search Funding Landscape for open opportunities.