Federal Energy Efficient Home Improvement Tax Credit (25C)

About This Program

The federal Section 25C tax credit provides 30% of costs for qualifying energy-efficient home improvements, up to $3,200 per year. Sub-limits apply: $600 for windows/skylights, $500 for exterior doors, $150 for home energy audits, and $2,000 for qualified heat pumps and heat pump water heaters. Credits are non-refundable but can be claimed annually through 2032.

30% of qualifying costs up to annual sub-limits. Non-refundable – requires federal tax liability to benefit. $2,000 sub-limit for heat pumps; $600 for windows; $150 for energy audits.

Key Details

• 30% tax credit on qualifying energy improvements; $3,200 annual maximum
• $2,000 sub-limit for heat pumps and heat pump water heaters
• $600 sub-limit for windows; $150 for home energy audits
• Available annually through December 31, 2032
• Non-refundable – must have federal tax liability to claim

How to Apply

Deadline: Annual – applies to qualifying purchases through December 31, 2032