IRS Energy Efficient Home Improvement Credit (25C)

About This Program

The IRS Section 25C credit provides up to $3,200 per year in federal tax credits for qualifying home energy efficiency improvements. Up to $2,000 for heat pumps and heat pump water heaters; up to $1,200 for insulation, windows, doors, and energy audits. Renewable annually through 2032 under the Inflation Reduction Act.

Non-refundable tax credit; reduces federal tax liability dollar-for-dollar

Key Details

• Up to $3,200/year in federal tax credits through 2032
• $2,000 for qualifying heat pumps and heat pump water heaters
• $1,200 for insulation, windows, doors, and energy audits
• No income limit — reduces federal tax liability
• Claim each year you make qualifying improvements

How to Apply

Deadline: Annually through 2032