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, expired 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: Direct Repair Help for Eligible Rural Homeowners
The USDA Single Family Housing Repair program has a loan component and a narrower grant component. USDA's current Section 504 program information lists loans up to $40,000 at 1 percent fixed interest over 20 years. Loans can repair, improve, or modernize a home or remove health and safety hazards. Grants are for homeowners age 62 or older who cannot repay a loan. The standard lifetime maximum is $10,000, and grant funds must remove health and safety hazards. USDA lists a $15,000 maximum for an eligible home damaged in a presidentially declared disaster area. Eligible seniors may combine standard loan and grant assistance up to $50,000. Applicants must own and occupy the home, be unable to obtain affordable credit elsewhere, meet the very-low-income limit, and live in an eligible rural area. USDA describes very low income as generally below 50 percent of area median income, but the official county limit controls. Check the property and income tools rather than relying on a town-population shortcut. Applications are handled through USDA Rural Development state or area offices, and approval depends on local funding availability. The program is not a national cash giveaway or a cosmetic-remodeling grant. Contact the office serving the property before collecting contractor documents.
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Weatherization Assistance: Free Home Energy Work (Not a Cash Grant)
The DOE Weatherization Assistance Program does not hand a homeowner cash. State, tribal, territorial, and local providers determine eligibility, audit the home, and arrange approved work. DOE says the program serves approximately 32,000 homes each year using DOE funds. The actual measures depend on the audit and local program. They can include insulation, air sealing, heating and cooling work, duct improvements, and health-and-safety measures tied to the weatherization job. DOE's current application guidance says households at or below 200 percent of the poverty guidelines, or households receiving Supplemental Security Income, are eligible under DOE guidelines. A state or territory may instead use the LIHEAP criterion of 60 percent of state median income. Use the local provider's current table; a national family-of-four dollar example becomes stale quickly. Both homeowners and renters may apply. Renters need the provider to coordinate permission with the landlord. Priority is generally given to elderly households, households with a member with a disability, families with children, high-energy users, and households with high energy burden. If income-eligible, the household is placed on the local provider's waitlist. DOE does not promise a universal wait time. Use the state map, contact the listed provider, and ask what documents and current queue apply in that service area.
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. They are administered by states, territories, and Tribes, so a federal program description does not prove that a household can apply locally today. DOE's Home Energy Rebates page describes HOMES rebates for eligible whole-home upgrades, with potential savings up to $8,000 depending on modeled savings and household rules. It describes High-Efficiency Electric Home Rebates of up to $14,000 across eligible electric appliances and building-envelope work. State designs, participating contractors, reservation systems, income verification, and eligible measures can differ. Current status: DOE says rebates are available in select states and directs households to their state, territory, or Tribal energy office for current eligibility. That is the durable answer. A static state list from February can be wrong by the time a homeowner calls, and some programs can pause or reserve funds by region or measure. Do not buy equipment because a federal page lists a maximum. First confirm that the local program is accepting applications, whether approval must occur before purchase or installation, which contractor network applies, and whether the household can combine the rebate with Weatherization, utility incentives, or other aid. DOE publishes specific restrictions on combining funding sources.
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.