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IRA Section 25C Energy Efficient Home Improvement Tax Credit

Internal Revenue Service (IRS)IRA-25C
Max per Applicant

$3K

Maximum a single org can receive

Deadline

Rolling / No deadline

Jurisdiction

United States

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

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Apply or Learn More

Visit the official page to review full eligibility requirements and apply.

Official Source
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Applicable Industries

Building ElectrificationConstructionReal EstateEnergy Management
Official Source