Energy Efficient Home Improvement Credit (25C) – Federal Tax Credit

About This Program

The Section 25C Energy Efficient Home Improvement Credit provides a 30% federal tax credit (up to $3,200/year) for qualifying upgrades including heat pumps ($2,000 sub-limit), insulation, windows ($600 sub-limit), doors ($500 sub-limit), and energy audits ($150). The credit resets each year, and 2025 is the final year to claim it before expiration.

Annual max $3,200; $2,000 for heat pumps/biomass; $1,200 for all other items

Key Details

• 30% tax credit annually, up to $3,200/year total
• Heat pumps, biomass stoves: up to $2,000/year
• Insulation, windows ($600), doors ($500), audit ($150): up to $1,200/year
• Resets each year — can claim every year improvements are made
• Expires December 31, 2025 — claim on IRS Form 5695

How to Apply

Deadline: Expires December 31, 2025 (per One Big Beautiful Bill, July 2025)