Is there still a tax credit for a panel upgrade?

For a few years, a federal tax credit took some of the sting out of a panel or service upgrade. A lot of websites still say it's available. For work finished in 2026, it isn't. Here's what the credit covered, when it ended, who can still use it, and what that means if you're planning an upgrade now. We're electricians, not tax advisers, so check your own situation with a tax professional.

What the 25C credit covered

The Energy Efficient Home Improvement Credit, section 25C of the tax code, is the IRS credit for energy improvements to an existing home. According to the IRS:

• The credit equals 30% of certain qualified expenses.
• It's worth up to $3,200 a year in total across all qualifying improvements.
• It includes the costs of electrical components needed to support residential energy property, including panelboards, sub-panelboards, branch circuits and feeders.
• Those electrical components qualify only if they meet the National Electrical Code and have a capacity of 200 amps or more, with a limit of $600 per item.
• The home has to be an existing home you improve or add onto, not a new home, and in most cases your main home. Landlords and owners who don't live in the home can't claim it.

When it ended

The IRS says the credit applies to qualifying property placed in service from January 1, 2023 through December 31, 2025. “Placed in service” generally means installed and ready to use, not contracted or paid for. A panel upgrade completed in 2026 doesn't qualify.

If your upgrade was done in 2025

You may still be able to claim it on your 2025 federal return. The 25C credit is claimed on IRS Form 5695, Residential Energy Credits. Keep the invoice showing the panel's capacity, the date the work was finished and the permit or inspection record. If you're not sure whether your upgrade qualified, that's a question for your tax preparer, and the IRS page linked below has the details.

Other credits that ended too

The federal Alternative Fuel Vehicle Refueling Property Credit (30C), which covered home EV chargers, also ended. The IRS instructions for Form 8911 state it doesn't apply to property placed in service after June 30, 2026, following the One Big Beautiful Bill Act (P.L. 119-21).

On the state side, the Maryland Energy Administration's residential EV charger rebate is open for fiscal year 2027: 50% of eligible costs up to $700, for Level 2 chargers only. You apply after the charger is installed and paid for, and the deadline is 3:00 PM ET on May 31, 2027, while funds last. Check the MEA's program page for which installation costs count before you plan around it.

The dates in one place

Incentives changed more in 2025 and 2026 than in the several years before. That's why this page shows the date we last reviewed it, and why it's worth checking the IRS and MEA pages yourself before you count on any of these numbers.

Should you still upgrade in 2026?

The tax credit was never a good reason on its own to upgrade a panel. The good reasons haven't changed:

• You're adding a load your service can't carry, like an EV charger, heat pump or generator. See upgrading from 100 to 200 amps.
• The panel is out of spaces, worn or showing signs of overheating.
• It's an older brand your home inspector flagged. See Federal Pacific Stab-Lok panels and Zinsco panel replacement.

If none of those apply, there's no tax reason to rush. If one does, the credit ending doesn't make the upgrade less necessary.

Watch out for outdated claims

Because the credit ran for three years, plenty of contractor pages and articles still quote it. If someone tells you a 2026 panel upgrade earns a federal tax credit, ask them to point to the IRS page that says so. We list our sources at the end of every guide, and this one shows the date we last checked it.

Planning an upgrade now

A panel or service upgrade needs an electrical permit and inspection wherever you live. Our guide to electrical permits in Harford and Baltimore explains who can file. Wyatt Electric has worked across Harford County, Baltimore County and Baltimore City since 1986. We'll look at your panel, run the load calculation and give you a price before any work starts.