Energy Efficient Home Improvement Credit

Internal Revenue Service

Closed Energy Assistance

About This Program

Note: Congress ended this federal tax credit for installations after December 31, 2025. Projects placed in service by that date can still be claimed on your 2025 federal return (IRS Form 5695).

Federal tax credit for energy-efficient improvements including heat pumps (up to $2,000), windows/doors (up to $600), insulation, and efficient water heaters. Annual credit limit is $3,200 with specific limits per improvement type.

30% of cost up to category limits; heat pumps up to $2,000, windows/doors $600

Data last verified 2026-06-09. How we verify our data.

This is a national program. In Prosper, TX, you can stack it with local programs like these:

Key Details

  • Up to $3,200 annual tax credit for efficiency upgrades
  • Heat pumps eligible for up to $2,000
  • Windows and doors up to $600 total
  • Insulation, water heaters, and more qualify
  • Must meet ENERGY STARĀ® requirements

How to Apply

A grant-savvy contractor in Prosper, TX can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Prosper early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Deadline: Ended December 31, 2025 (federal law change)

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Grant-approved contractors understand the documentation, inspections, and timelines, so your funding releases on schedule.

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