Federal Energy Efficient Home Improvement Credit (25C)

About This Program

The federal 25C tax credit covers 30% of the cost of energy-efficient home improvements including heat pumps (up to $2,000), insulation (up to $1,200), windows ($600), doors ($500), and home energy audits ($150). The annual cap is $3,200 (with $2,000 sub-cap for heat pumps). Credit resets every tax year, allowing homeowners to phase improvements over multiple years for maximum benefit.

Annual credit cap resets each year; plan improvements across multiple tax years to maximize

Key Details

• 30% credit on heat pumps (up to $2,000), insulation (up to $1,200), windows ($600), doors ($500)
• Home energy audit qualifies for $150 credit
• $3,200 annual cap resets every year through 2032
• Plan multi-year improvement projects to maximize annual $3,200 credit
• Claim on IRS Form 5695; requires qualified products meeting energy standards

How to Apply

Deadline: Annual cap resets each tax year through 2032