IRA Energy Efficient Home Improvement Tax Credit (25C)

About This Program

The 25C tax credit covers 30% of costs for qualifying home energy improvements up to $3,200 annually. Up to $2,000 for heat pumps and heat pump water heaters; up to $1,200 for insulation, windows, doors, and electrical panel upgrades. Providence homeowners can stack this federal credit with Rhode Island Energy rebates and Clean Heat RI incentives for maximum savings.

30% credit; $2,000 heat pumps + $1,200 other; resets annually through 2032.

Key Details

• 30% of qualifying project costs, up to $3,200 per year
• Heat pumps / heat pump water heaters: up to $2,000
• Insulation, windows, doors, electrical panel: up to $1,200
• Stack with RI Energy rebates and Clean Heat RI for maximum savings
• Active through 2032; resets each tax year

How to Apply

Deadline: Annual; claim on federal tax return through 2032