Federal Energy Efficient Home Improvement Credit

U.S. Department of Energy / IRS

Closed Energy Assistance

About This Program

Note: Congress ended this federal tax credit for installations after December 31, 2025. Projects placed in service by that date can still be claimed on your 2025 federal return (IRS Form 5695).

Federal tax credit for energy-efficient home improvements including heat pumps, windows, doors, insulation. Credit is 30% of costs with annual caps: $1,200 for most improvements, $2,000 for heat pumps and heat pump water heaters.

30% tax credit with caps: $1,200 general/$2,000 heat pumps per year

Verified against U.S. Department of Energy / IRS's official page on 2026-06-17.

Data last verified 2026-06-09. How we verify our data.

This is a national program. In Silver City, NM, you can stack it with local programs like these:

Key Details

  • 30% credit on qualifying improvements
  • Up to $1,200/year for windows, doors, insulation
  • Up to $2,000/year for heat pumps
  • Must meet Energy Star requirements
  • Available annually for installations completed by December 31, 2025

How to Apply

Get free help applying Visit Official Program Page Track this program

A grant-savvy contractor in Silver City, NM can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Silver City early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

Form to file: IRS Form 5695

This is a federal tax credit, not a grant you apply for. You can claim up to 30 percent of the cost of qualifying improvements like insulation, exterior doors and windows, heat pumps, and efficient heating and cooling, subject to yearly limits, on your federal tax return using Form 5695.

Steps to apply

  1. Have your solar or clean energy system installed and pay for it.
  2. Keep the itemized invoice and proof of payment.
  3. Complete IRS Form 5695 and file it with your Form 1040 for the year the system was placed in service.
  4. If the credit is larger than your tax bill, carry the unused amount forward to next year.
Get the official formDownload the fillable PDF

Documents you will likely need

  • Itemized invoice from your installer showing the system cost.
  • Proof of payment.
  • Manufacturer certification statement for the equipment.
  • Your federal tax return (Form 1040) for the year of installation.
Download this checklist (PDF)

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Ended December 31, 2025 (federal law change)

Questions about this program?

Ask us. It is free, and a real person answers within a business day.

Email us about this program

Need a Contractor for This Grant?

Grant-approved contractors understand the documentation, inspections, and timelines, so your funding releases on schedule.

Get matched with a pro, free Browse Silver City, NM contractors

Find More Programs in Silver City, NM

This is just one of many grants, rebates, and free programs available. Stack them together to maximize your savings.

See All Programs