Energy Efficiency Incentives in 2026: What Changed and Where to Find Them Now

Updated October 2026. For several years, federal tax incentives rewarded builders, designers, and owners for choosing energy-efficient building envelopes like R-Shield Insulation & Geofoam, Premier SIPS, and Premier ICF. The 2025 federal Reconciliation Bill moved up the end dates for the two biggest of those incentives, and both have now ended. Here's what changed, and where to find incentives for efficient construction today.

Note: The following is a general guide only and should be verified by a tax professional for your specific project.

Federal Incentives That Have Ended

• Section 45L – New Energy Efficient Home Credit: Not available for homes acquired (sold or leased) after June 30, 2026. This business credit was worth $500 to $5,000 per qualifying single-family, manufactured, or multifamily unit.
• Section 179D – Energy Efficient Commercial Buildings Deduction: Not available for buildings that begin construction after June 30, 2026. This deduction was worth up to $5.00 per square foot for commercial, multifamily, and public buildings.

Already have projects in the pipeline? Homes acquired by June 30, 2026, or commercial projects that began construction by that date, may still qualify. Talk to your tax advisor about eligibility and documentation. See the IRS Energy Credit FAQs for the official termination dates.

Where Incentives Come From Now

Federal credits are no longer the main driver, but many states, cities, and utilities still reward energy-efficient construction. Common program types include:

• Utility new-construction programs that offer rebates, design assistance, or energy modeling support for buildings that perform above code
• State incentives, including rebates, grants, tax programs, and financing for efficient or above-code buildings
• Local programs from cities and counties that encourage high-performance construction
• Energy-efficient financing, such as green mortgage and loan programs for homebuyers and building owners

For affordable multifamily housing, the 2025 bill also expanded the Low-Income Housing Tax Credit (LIHTC) beginning in 2026, giving developers more credit capacity.

How to Find Programs for Your Project

1. Search DSIRE. The Database of State Incentives for Renewables and Efficiency lists state, local, and utility programs across the U.S.
2. Contact your utility early. Many programs require enrollment or energy modeling before construction begins.
3. Check your state energy office for current rebates, grants, and financing.
4. Verify details with a tax professional before including any incentive in your project budget.

How Premier Building Systems Help You Qualify

Most efficiency programs reward measured performance: lower energy use than code, better air tightness, or a recognized green building certification. Premier's building systems help on each front:

• R-Shield EPS insulation delivers stable, long-term R-values for roofs, walls, and below-grade applications.
• Premier SIPS create a continuously insulated, airtight roof, wall, and floor envelope with minimal thermal bridging.
• Premier ICF combines continuous insulation with the thermal mass and strength of concrete.
• Product documentation, including R-values, assemblies, and code reports, supports program applications and energy modeling.

Build Efficient With or Without Federal Credits

Tax incentives were always a bonus. The lasting value of an efficient building envelope is lower energy bills, better comfort, and long-term durability for the life of the building.

Local Premier representatives are ready to help you plan a project that performs and is positioned for the incentives available in your region. Contact Premier Building Systems to get started.