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Fix First Home › United States › Energy Efficient Home Improvement Credit (25C)

Energy Efficient Home Improvement Credit (25C) closed

Administered by the Internal Revenue Service.

The federal tax credit for heat pumps, insulation, windows, doors and home energy audits: 30% of the cost, up to $3,200 a year. It covers only improvements made through 31 December 2025, so nothing installed in 2026 qualifies.

source · verified 24 September 2026 · amounts in US dollars

What it pays

Ended: nothing installed after 31 December 2025 qualifies

The thing most pages get wrong

The IRS page's own search description still reads "you may qualify for an annual tax credit up to $3,200", with no end date, and that is the line search results show. The page itself says the credit covers improvements made through 31 December 2025. Work finished in 2025 is claimed on the 2025 return; anything installed in 2026 gets nothing.

What it paid

30% of qualified costs, nonrefundable. Up to $2,000 a year for heat pumps, heat pump water heaters and biomass stoves or boilers, plus up to $1,200 a year for everything else: exterior doors ($250 each, $500 in all), windows and skylights ($600), a home energy audit ($150), and central air conditioners, furnaces, boilers, water heaters and electrical panels ($600 each). Only a main home, and only an existing one.

If you did the work in 2025

Claim it on Form 5695, Part II, for the year the equipment was installed, not the year it was bought. From 2025, each item except insulation and air sealing needs the manufacturer's Qualified Manufacturer Identification Number on the return.