Energy Efficient Home Improvement Credit (25C)

About This Program

The Energy Efficient Home Improvement Credit (IRC Section 25C) provides a 30% annual tax credit on qualifying home energy improvements, up to $3,200 per year: $2,000 for heat pumps/biomass stoves, and $1,200 for insulation, windows ($600 cap), exterior doors ($500 cap), and home energy audits ($150 cap). Available through December 31, 2025. Starting in 2025, eligible items must include the manufacturer's Qualified Manufacturer ID Number (QMID).

Annual credit — not a lifetime limit. Claim each year improvements are made. File IRS Form 5695.

Key Details

• 30% annual credit — up to $3,200/year total
• $2,000/year for qualifying heat pumps and biomass stoves
• $1,200/year for insulation, windows, doors, audits
• Annual limit resets each tax year (not lifetime)
• File IRS Form 5695; eligible items need manufacturer QMID in 2025

How to Apply

Deadline: Annual credit — available each tax year through December 31, 2025