Energy Efficient Home Improvement Credit (25C)

About This Program

The 25C Energy Efficient Home Improvement Credit provides up to $3,200 per year (30% of costs) for qualifying energy efficiency upgrades. Breakdown: up to $2,000 for qualified heat pumps, biomass stoves, or heat pump water heaters; up to $1,200 for insulation, air sealing, windows, exterior doors, and energy audits ($150 max for audits). Annual limit — can claim each year for different qualifying improvements. Note: Verify current availability after the One Big Beautiful Bill as the credit was scheduled through 2032 but recent legislation may affect 2026+ claims.

Annual credit limit resets each year. Claim on IRS Form 5695. 30% of cost up to per-category caps. Verify 2026 credit availability after recent tax legislation.

Key Details

• Up to $3,200/year in federal tax credits for energy efficiency upgrades
• Up to $2,000 for heat pumps, biomass stoves, or heat pump water heaters
• Up to $1,200 for insulation, windows, exterior doors, energy audits
• Annual limit resets — claim each year for new qualifying improvements
• Claim on IRS Form 5695; verify 2026 availability after recent tax legislation

How to Apply

Deadline: December 31, 2025 — check status after One Big Beautiful Bill