IRA Energy Efficient Home Improvement Tax Credit (25C)

About This Program

The Inflation Reduction Act's 25C tax credit covers 30% of costs for qualifying energy-efficient home improvements, up to $3,200 annually. The credit includes up to $2,000 for heat pumps and heat pump water heaters, and up to $1,200 for insulation, windows, doors, and electrical panel upgrades. The credit is nonrefundable and resets each tax year.

30% credit, annual max $3,200 ($2,000 for heat pumps; $1,200 for other items).

Key Details

• 30% of qualifying project costs, up to $3,200 per year
• Heat pumps / heat pump water heaters: up to $2,000
• Insulation, windows, doors, electrical panel: up to $1,200 combined
• Resets each tax year through 2032
• No income limit; must have federal tax liability to use credit

How to Apply

Deadline: Annual; claim on federal tax return through 2032