Federal Energy Efficient Home Improvement Credit (25C)

About This Program

Homeowners can claim a 30% annual federal tax credit up to $3,200 per year for qualified energy-efficiency improvements including insulation, exterior windows and doors, heat pumps, biomass stoves, electric panel upgrades, and home energy audits. Annual caps: $1,200 general limit, $600 windows, $500 doors, $2,000 heat pumps/biomass. No lifetime cap — the credit resets each tax year. Available through December 31, 2025 under current law.

Example: $10,000 heat pump = $2,000 credit. $2,000 insulation + $6,000 windows = $600 + $600 = $1,200 credit.

Key Details

• 30% credit, up to $1,200/year general; up to $2,000 for heat pumps or biomass stoves
• Covers insulation, windows ($600 cap), doors ($500 cap), HVAC, heat pumps, panel upgrades, energy audits
• No lifetime cap — credit resets annually
• Must be primary residence; claim on IRS Form 5695
• Valid through December 31, 2025 under current law

How to Apply

Deadline: December 31, 2025