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. Annual caps include $1,200 for insulation, windows, doors, and energy audits; $2,000 for heat pump HVAC or heat pump water heaters. The credit resets annually through 2032 and can be stacked with NC Energy Saver rebates for maximum benefit.

Estimate for Raleigh homeowner installing heat pump HVAC plus adding insulation

Key Details

• 30% credit on qualifying home energy improvements
• Up to $1,200/year for insulation, windows, doors, and energy audits
• Up to $2,000/year for heat pumps and heat pump water heaters
• Resets each year through 2032 – stack with NC Energy Saver rebates
• Claim on IRS Form 5695 with your annual federal return

How to Apply

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