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. Credits include up to $2,000 for heat pumps and heat pump water heaters, $1,200 for insulation, windows, doors, and energy audits, and separate limits for each category. The credit is non-refundable but renewable annually through 2032.

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 — applies to federal tax liability
• Renews annually — claim each year you make improvements

How to Apply

Deadline: Annually through 2032 (Inflation Reduction Act)