Rebates + Financing
Federal Tax Credits: What Has Changed
Federal credits expired. Maine rebates are still going strong.
The federal Energy Efficient Home Improvement Credit (Section 25C) expired on December 31, 2025. Homeowners who completed qualifying projects before that date can still claim the credit on their 2025 tax return. But for projects in 2026 and beyond, the federal credit is no longer available.
The good news: Efficiency Maine rebates are still available and can be even more valuable than the old federal credit. Unlike a tax credit that required you to wait until tax season and owe enough in taxes to benefit, Efficiency Maine rebates are deducted directly from your project cost. You save upfront, with no waiting and no tax liability required.
What did the federal credit cover?
The Section 25C credit provided up to $3,200 per year for energy-efficient home improvements. Here is what was available before it expired:
Heat Pumps & Heat Pump Water Heaters:
The federal credit covered 30% of costs, up to $2,000 per year. Expired Dec 31, 2025. Efficiency Maine now offers $1,000 to $3,000 per outdoor unit (up to $9,000 for qualifying households).
Insulation & Air Sealing (Previously up to $1,200):
The federal credit covered 30% of material costs, up to $1,200 per year. Expired Dec 31, 2025. Efficiency Maine offers 40-80% of project cost, up to $4,000 to $8,000 depending on income.
