Federal Energy Efficient Home Improvement Tax Credit (25C)

About This Program

The IRS Section 25C Energy Efficient Home Improvement Credit allows homeowners to claim up to 30% of the cost of qualifying energy improvements as a tax credit each year, with annual caps: $600 for windows/skylights, $500 for exterior doors ($250 each), $600 for efficient HVAC equipment, $2,000 for heat pumps or biomass stoves, and $150 for a home energy audit. The annual combined maximum is $3,200. Note: Florida opted out of IRA HOMES/HEAR rebates, making this federal tax credit the primary IRA benefit available to Miami homeowners.

Tax credit (not a refund) — reduces federal tax owed. Credit is 30% of project cost up to per-category caps. Claim on IRS Form 5695. Available through tax year 2032.

Key Details

• 30% federal tax credit on qualifying energy improvements
• Annual cap: $3,200 total ($2,000 for heat pumps, $600 windows, $600 HVAC)
• Also covers insulation, exterior doors, and home energy audits
• Florida opted out of IRA rebates — 25C is the primary IRA benefit here
• Claim on IRS Form 5695 with your federal tax return through 2032

How to Apply

Deadline: Annual — claim on federal tax return