Federal Energy Efficient Home Improvement Tax Credit (25C)

About This Program

The federal 25C Energy Efficient Home Improvement Credit allows homeowners to claim 30% of qualifying improvement costs (up to annual limits) for insulation, windows, doors, heat pumps, water heaters, and home energy audits. Annual caps include $1,200 for insulation/windows/doors/audits and $2,000 for heat pumps or heat pump water heaters. The credit resets each year through 2032.

Estimate for homeowner installing heat pump HVAC and adding insulation in a single year

Key Details

• 30% credit on qualifying home energy improvements
• Up to $1,200/year for insulation, windows, doors, and energy audit
• Up to $2,000/year for heat pumps and heat pump water heaters
• Annual caps reset each year through 2032
• Claim on IRS Form 5695 with your annual federal return

How to Apply

Deadline: Annual – claim on federal tax return for the year improvements are made