IRS Energy Efficient Home Improvement Credit (25C)

About This Program

The Section 25C tax credit allows homeowners to claim 30% of the cost of qualifying energy-efficient home improvements, up to $3,200 per year. The $1,200 annual cap covers insulation, air sealing, windows, exterior doors, and energy audits; a separate $2,000 annual cap applies to heat pumps, heat pump water heaters, and biomass stoves. There is no lifetime limit — you can claim the maximums each year. Note: the credit was set to expire December 31, 2025 under current law; confirm current status before filing.

No income limit; claim on IRS Form 5695 with federal tax return for year of installation; 30% of cost up to annual caps; qualified manufacturer certification may be required

Key Details

• 30% tax credit on qualifying energy-efficient improvements — no income limit
• $1,200/year cap for insulation, windows, doors, energy audits
• Additional $2,000/year cap for heat pumps, heat pump water heaters, biomass
• File IRS Form 5695 with your tax return for the year of installation
• Confirm current status — credit was set to expire December 31, 2025

How to Apply

Deadline: Annual — claim on federal tax return for the year of installation; program runs through December 31, 2025 under current law