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IRA Section 25C Energy Efficient Home Improvement Tax Credit

Internal Revenue Service (IRS)IRA-25CRefreshed 1 month ago
Do I qualify?
Max funding

$3K

per applicant

Type

Tax Credit

Reduces tax liability

Deadline

Rolling

No fixed cutoff

Timing

Annual tax return

Claim with year-end filing

Complexity

Moderate

File with tax return

About This Program

Provides annual tax credits of up to $3,200 for homeowners installing energy-efficient upgrades including heat pumps, insulation, windows, and electrical panels. Resets every year — not a lifetime limit.

Key Requirements & Eligibility

  • 1Annual credit limit: $3,200 total ($2,000 for heat pumps, $1,200 for other improvements)
  • 2Heat pump HVAC: 30% credit up to $2,000; heat pump water heater: 30% up to $2,000
  • 3Insulation, windows, doors, air sealing: 30% credit up to $1,200 combined
  • 4Electrical panel upgrades: 30% up to $600 when paired with qualified energy improvements
  • 5Primary residence only — not applicable to rental properties or new construction

Do I qualify?

Answer the questions below to get an instant self-assessment of your fit for this program. This is informational — final determinations are made by the administering agency.

0 of 5 answered

1.Annual credit limit: $3,200 total ($2,000 for heat pumps, $1,200 for other improvements)

2.Heat pump HVAC: 30% credit up to $2,000; heat pump water heater: 30% up to $2,000

3.Insulation, windows, doors, air sealing: 30% credit up to $1,200 combined

4.Electrical panel upgrades: 30% up to $600 when paired with qualified energy improvements

5.Primary residence only — not applicable to rental properties or new construction

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